3G roll-out and the future

O2 has third generation mobile telephony (3G) services in the UK, Germany, and Ireland. O2 aims to be best to market, not the first, with the introduction of services based on one-touch, intuitive, simple colour menus and across a range of devices – from handsets to PC cards. O2 offers an attractive selection of new dual-mode handsets, including the competitively priced O2 X4, the first own-branded 3G handset.

O2 became the first operator to have a working 3G network in Europe on the Isle of Man and launched Europe’s first commercial High Speed Downlink Packet Access (HSDPA) on the island in November, 2005. The company has HSDPA capability built into the network to provide improved performance over today’s 3G networks and, in addition to the HSDPA on the Isle of Man launch, its German operation is currently conducting trials. O2 currently plans to introduce commercial HSDPA services in its other territories in the second half of 2006.

O2 did not rush into offering commercial 3G services after licences were awarded, but has taken a considered approach, identifying business priorities and ensuring it can offer customers low-cost, attractive handsets, a compelling user experience with coverage to match demand. In the UK and Germany, population covered by 3G currently stands at more than 50%.

The successful O2 Active portal, which has around 8.5 million active users, and O2’s i-mode offering suupports 3G, offering a personalised menu and faster access to a wide range of innovative data content. In addition, Telefónica O2 UK introduced 'Connection Manager', the UK's first, integrated mobile business solution to incorporate 3G, Wireless LAN and GPRS. This uses a simple, intuitive interface to enable the customer to connect via O2's integrated data card to the fastest available wireless technology.

Telefónica O2 Germany GmbH & Co OHG launched 'Surf@Home', a unique mobile broadband product, which integrates 3G and Wireless LAN technologies to offer customers fast internet access without a fixed line. Surf@Home complements O2's highly successful Genion Homezone service, which gives customers the ability to make voice calls from home at fixed line prices, without paying for a fixed phone line.