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O2 UK Results |
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#101 |
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Inactive Member
Join Date: Oct 2002
Location: Glasgow
Posts: 10,276
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On the other hand one could say that with the lowest penetration of smatphone users they have the most potential for revenue growth. If you have 90% of your customers already using smart phones there is far less opportunity to increase revenues from exiatingh customers and the costly business is acquiring customers from competitors. The real strength of O2 appears to be in the brand as it continues to increase its customer base despite cutthroat competition.
O2 don't count Tesco Mobile numbers in their figures nor does EE count Virgin Mobile. I expect most other MVNOs are counted separately also. |
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#102 |
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Forum Member
Join Date: Mar 2002
Location: In the future....
Posts: 11,259
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Quote:
On the other hand one could say that with the lowest penetration of smatphone users they have the most potential for revenue growth. If you have 90% of your customers already using smart phones there is far less opportunity to increase revenues from exiatingh customers and the costly business is acquiring customers from competitors. The real strength of O2 appears to be in the brand as it continues to increase its customer base despite cutthroat competition.
O2 don't count Tesco Mobile numbers in their figures nor does EE count Virgin Mobile. I expect most other MVNOs are counted separately also. They have struggled to get to 50% and have pretty much stalled at this level
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#103 |
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Inactive Member
Join Date: Oct 2002
Location: Glasgow
Posts: 10,276
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Quote:
They have struggled to get to 50% and have pretty much stalled at this level
![]() Thinking about coverage it follows that most mobile customers use their service in their home area and there is a key difference in strategy between networks in this regard. If you live in a city like Glasgow that has great O2 2/3/4G coverage and spend most of your time there it's very likely you will remain loyal to O2. You might get a better signal on a bus or a train heading out for a visit to Stirling or Dundee on an alternative network that has invested in more 3G coverage but if that network has lots of smartphone users and unlimited tethering your user experience in your home city might not be as good. Most folks value their home area mobile experience most important as that is where they need to use the service most often. Price controlled data distribution ensures that the growing demand for mobile data can be regulated without the need for 'traffic management', fair use policies or enforced compression of media. You pays your money and takes your choice and the quarterly stats seem to suggest that O2 have been convincing and acquiring customers consistently for a long time. If the key factors that customers consider valuable were not delivered on O2 they would have been losing customers rather than gaining them. As a legacy network O2 has a lot of basic voice and text customers, which are still profitable and quite a few will doubtless be convinced to upgrade as the cost of smartphones continues to decrease. |
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#104 |
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Inactive Member
Join Date: Jan 2014
Posts: 514
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wavejock is looking for attention again guys...
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#105 |
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Inactive Member
Join Date: Oct 2002
Location: Glasgow
Posts: 10,276
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Quote:
wavejock is looking for attention again guys...
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#106 |
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Forum Member
Join Date: Jul 2002
Location: a land filled with trolls
Posts: 12,018
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Quote:
wavejock is looking for attention again guys...
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#107 |
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Inactive Member
Join Date: Jan 2014
Posts: 514
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Whilst O2 currently have 11.6 million smartphone customers, not everyone wants a smartphone. I have several colleagues who won't carry one and are more than happy with voice and texts on phones and use PC's and tablets for the Internet. O2, Vodafone and EE have been upgrading 2G networks and they all still promote and sell low cost phones that use 2G so they must feel there will be a profit to be made from that technology for sone time to come. Then there are those who have two phones, one smart and a cheapie for leisure and why not? The mobile phone as a simple communications device has a place for many even nowadays and thankfully there are options for those from some operators at prices less than £10.
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#108 |
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Inactive Member
Join Date: Oct 2002
Location: Glasgow
Posts: 10,276
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Quote:
Weren't you just boasting about smartphone use on O2?!?
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#109 |
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Forum Member
Join Date: Jan 2012
Location: London, UK
Posts: 8,759
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Wavejock is just looking for a pointless argument.
Put him on your ignore list rather than responding. |
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#110 |
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Forum Member
Join Date: Mar 2009
Posts: 14,577
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Interestingly I completely missed this supreme court ruling in BT's favour which O2 commented in their financial report about. O2 Quote:
On 9th July 2014 the Supreme Court gave the judgement on variable wholesale termination charges for calls to 080, 0845 and 0870 numbers, in favour of BT. Telefónica UK is disappointed with the ruling, and is currently reviewing the implications in detail, however no significant income statement impacts related to the ruling are expected as the Company had already provided for the likely impact.
It seems BT charge a wholesale price based on what the end network retails their sale price to the consumer at, so in Three's case with 3-2-1 Three pay a percentage of that, whereas O2, who might charge 15p or 25p have to pay a lot more as they are selling it for more.O2 thought that this was unfair, but BT won in the supreme court. An interesting outcome. |
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#111 |
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Forum Member
Join Date: Apr 2013
Posts: 1,662
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Quote:
Interestingly I completely missed this supreme court ruling in BT's favour which O2 commented in their financial report about.
O2 It seems BT charge a wholesale price based on what the end network retails their sale price to the consumer at, so in Three's case with 3-2-1 Three pay a percentage of that, whereas O2, who might charge 15p or 25p have to pay a lot more as they are selling it for more. O2 thought that this was unfair, but BT won in the supreme court. An interesting outcome. http://ee.co.uk/our-company/financia...raphic-numbers It has dragged on for years ever since the mobile networks complained about BT's ladder pricing. Ofcom blocked it and it went through various appeals to where we are now. |
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#112 |
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Forum Member
Join Date: Jun 2006
Location: Wales
Posts: 4,554
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For once, I agree with Wavejock. I mean, O2's business model has to be commended. Their 'pay us your money and we won't bother to invest it into a service that you can actually make use out of, particularly your data, so up yours! then we'll drag our heels to catch up with the MBNL networks because, oh crap, data is where it's at now' approach has worked wonders...
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#113 |
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Inactive Member
Join Date: Oct 2002
Location: Glasgow
Posts: 10,276
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Quote:
For once, I agree with Wavejock. I mean, O2's business model has to be commended. Their 'pay us your money and we won't bother to invest it into a service that you can actually make use out of, particularly your data, so up yours! then we'll drag our heels to catch up with the MBNL networks because, oh crap, data is where it's at now' approach has worked wonders...
The truth is that O2 have been very shrewd and invested where they know people make use of the service mostly and have also been careful to ensure that what folks sign up for they can deliver without limiting factors like traffic management. For a very long time some on this forum have been waiting for the collapse of the O2 customer base and I suspect each quarter there has been sighs of disbelief when the numbers of O2 customers rise. I'm not sure how long it will take for some to realise that there is more than one business model and not all customers have the same requirements. O2 have steered clear of the unlimited data minefield and positioned themselves as a premium brand with high standards of customer service and that seems to have worked well just as it has for other premium brands like Thomson Holidays, BMW, Waitrose etc. |
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#114 |
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Forum Member
Join Date: Mar 2009
Posts: 14,577
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Quote:
Nah...... you don't hold on to 12 million smartphone users with a policy like that.
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#115 |
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Forum Member
Join Date: Jun 2006
Location: Wales
Posts: 4,554
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I don't think that I'd feel like I was on a premium service if I was on a train and I could only get 3G for 50% of the journey...
After all, if I was buying a shiny new smartphone, the very least I would expect to be able to do is doo what I want, when I want, 97% of the time. O2 couldn't fulfil my requirement in that regard, whereas MBNL can. |
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#116 |
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Forum Member
Join Date: Jul 2002
Location: a land filled with trolls
Posts: 12,018
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Yup. Come 2020, O2 may well be a force to be reckoned with - but that's five and a half years away.
But at least we do all know that O2 is by far the best network in Glasgow. |
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#117 |
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Inactive Member
Join Date: Oct 2002
Location: Glasgow
Posts: 10,276
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Where has it been stated that O2 is the best network in Glasgow? More mischief making? I used Glasgow as an example of a city where O2 had good range and depth of coverage, nothing more. Personally I use EE in my home city, for no other reason than because they had the widest 4G coverage when I upgraded last year. Now that Vodafone and O2 also have the city and surrounding areas covered their deals will be considered when I am next due to re-contract.
If a network can deliver in my home area that is pretty much all that matters to me as I do not travel greatly across the UK and I am sure there are 1000s like me. I really don't care about getting 3G in some far flung rural area of the UK that might account for 0.0001% of my yearly usage. It's good to know that XX% of the nation has coverage but for me it's my home city that really matters most and in most big cities there is coverage by all providers although some have more 4G than others currently. The bottom line is that customers are not foolish and don't generally put up with deficiency of service to the exaggerated extent some here state. Coverage and performance surveys have seen a levelling out of the networks with EE enjoying a clear lead in most because of their head start and simultaneous upgrade and integration of Orange sites into one network. Different approaches by the network providers deliver different results. Who has the best approach remains to be seen with each attempting to gain customers whilst coping with specific issues like coverage Vs congestion. It's far from black and white especially in big cities where 70% of the UK population live. Look forward to discovering what the next set of results deliver in 3 months from now. |
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#118 |
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Forum Member
Join Date: Mar 2002
Location: In the future....
Posts: 11,259
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Quote:
If a network can deliver in my home area that is pretty much all that matters to me as I do not travel greatly across the UK and I am sure there are 1000s like me. I really don't care about getting 3G in some far flung rural area of the UK that might account for 0.0001% of my yearly usage. It's good to know that XX% of the nation has coverage but for me it's my home city that really matters most and in most big cities there is coverage by all providers although some have more 4G than others currently.
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#119 |
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Forum Member
Join Date: Jun 2001
Location: The wilds of West Tyrone
Posts: 2,122
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Quote:
There lies the problem. Im all right Jack attitude. If it doesn't affect you its not a problem. Try going out of the Glasgow and it will open your eyes. Otherwise keep your head in the sand
![]() Hey, I know O2's 3G coverage in some parts of the UK is poor or non-existent. OTOH in some others it can range from decent to excellent. Same goes for all networks, though some have bigger gaps to potentially fill than others. |
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#120 |
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Forum Member
Join Date: Jan 2012
Location: London, UK
Posts: 8,759
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Agreed. And besides, a lot of it is brand. Just one example,I know a guy who has been on Vodafone for years on pay as you go paying extortionate rates and topping up £40 a month. It's what they're used to. (And yes, other networks work in his area as well)
There are many reasons as to why someone would join one network. Coverage is only one factor out of the hundreds of other factors. I can say without a doubt that EE and Three have overall better coverage than O2 or Vodafone but it doesn't mean 100% of mobile phone customers will be on EE/Three. Of course some people are going to go on O2 and Voda as well because of the other factors. Just like how not every one uses Amazon for their products when they're arguably the best and have the best range etc... Some people are still going to use supermarkets and other competitors. Vodafone has always had a lot of brand loyalty due to the way they've positioned themselves and due to the value added services they provide and that's why they still maintain a huge customer base despite the fact that there are much better options out there for consumers. Obviously I'm generalising but I'd say that's a major reason. You can say the same kind of things about O2 as well. Plus O2 has a great reputation for customer service and for being a somewhat reliable network and THE network for the UK. |
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#121 |
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Forum Member
Join Date: Mar 2002
Location: In the future....
Posts: 11,259
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Quote:
Agreed. And besides, a lot of it is brand. Just one example,I know a guy who has been on Vodafone for years on pay as you go paying extortionate rates and topping up £40 a month. It's what they're used to. (And yes, other networks work in his area as well)
There are many reasons as to why someone would join one network. Coverage is only one factor out of the hundreds of other factors. I can say without a doubt that EE and Three have overall better coverage than O2 or Vodafone but it doesn't mean 100% of mobile phone customers will be on EE/Three. Of course some people are going to go on O2 and Voda as well because of the other factors. Just like how not every one uses Amazon for their products when they're arguably the best and have the best range etc... Some people are still going to use supermarkets and other competitors. Vodafone has always had a lot of brand loyalty due to the way they've positioned themselves and due to the value added services they provide and that's why they still maintain a huge customer base despite the fact that there are much better options out there for consumers. Obviously I'm generalising but I'd say that's a major reason. You can say the same kind of things about O2 as well. Plus O2 has a great reputation for customer service and for being a somewhat reliable network and THE network for the UK. ![]() I see O2 and Vodafone as the golden oldies networks
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#122 |
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Forum Member
Join Date: Mar 2000
Location: This forum
Posts: 3,392
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Quote:
You can say the same kind of things about O2 as well. Plus O2 has a great reputation for customer service and for being a somewhat reliable network and THE network for the UK.
Vodafone is fine (even has HD voice on 3G) but O2's voice quality is so poor on 2G and just able usable on 3G :-/ |
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#123 |
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Forum Member
Join Date: Jul 2002
Location: a land filled with trolls
Posts: 12,018
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People go with what they're used to. I was a loyal Vodafone customer from 1989 to the day Orange launched. For a while I had two lines, but quickly realised that Orange was superior (better value, more services etc) and dropped Vodafone.
Of course, back in the early 1990s Orange and even one2one were quite groundbreaking as they saw a way to offer value that neither VF or Cellnet did - no doubt because even then they had all the lucrative business contracts. |
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#124 |
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Forum Member
Join Date: Mar 2000
Location: This forum
Posts: 3,392
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Quote:
Of course, back in the early 1990s Orange and even one2one were quite groundbreaking as they saw a way to offer value that neither VF or Cellnet did - no doubt because even then they had all the lucrative business contracts.
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#125 |
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Forum Member
Join Date: Jun 2001
Location: The wilds of West Tyrone
Posts: 2,122
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Quote:
I see O2 and Vodafone as the golden oldies networks
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