News that the O2 mobile broadband service added nearly 73,000 customers in the third quarter of 2008 has been welcomed by the market. Despite the fact that the UK is entering a recession this was an increase of some 16% on the figure in the second quarter. In total there are now 267,000 broadband customers signed up to the O2 mobile broadband service which is a great start to the business.
However, in the longer term this still leaves the company around 750,000 customers short of those signed up to the Orange broadband package and lacking critical mass at the moment. The potential for the future is enormous when you bear in mind that O2 have in the region of 19 million mobile phone customers in the UK alone which offers a massive customer base to promote their broadband services to. Critical mass will be essential in the UK broadband market going forward as the larger groups will be able to offer better value for money services and attract new customers.
Despite some concern that Telefonica, the parent company of O2, may not be as supportive of the long-term to the business as some had hoped this does not appear to be the case. Mobile broadband in the UK is only starting out on what many expect to be a major growth phase.