Telecommunications firm O2 has predicted that its foray into the broadband market will be delayed following declining mobile customer uptake.

After adding 34,000 new mobile customers in the first quarter of the year, the firm has stated that its move into broadband services will have to wait until October – ten months later than it had initially planned.

Over the same period, competitor Vodafone added about 236,000 new customers and generated group revenue of £8.3 billion, marking 7.5 per cent growth on the same period in the previous year.

Despite the disappointing customer uptake, the firm posted growth in total UK revenue of 10.6 per cent and Peter Erskine, chairman and chief executive of Telefonica O2 Europe described the company's performance as "robust".

Average revenues per user were found to have risen from £22.8 last year to £23.4 and the group has said that it will now focus on maintaining strong margins and retaining current customers.


Tuesday, 31st July 2007

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