Telefónica O2 sets sights on broadband expansion

7th December 2007, Comments 0 comments

Telefónica's O2 Europe division said yesterday it is looking to grow in the British and German ADSL broadband markets.

7 December 2007

MADRID - Telefónica's O2 Europe division said yesterday it is looking to grow in the British and German ADSL broadband markets over the next few years.

O2 Europe Chief Executive Peter Erskine told a news conference in London that Britain is expected to add a further eight million ADSL customers in the coming years and a similar number in Germany. A further eight million users are expected to switch operators in both countries, he added.

Telefónica had 9.6 million ADSL customers as of the end of September, an increase of 32 percent over a year earlier.

Telefónica acquired UK mobile operator O2 last year for EUR 26 billion. It is now integrated into the O2 Europe division, which includes Telefónica's Czech subsidiary Cesky Telecom and its businesses in Britain, Germany, Ireland and Slovakia.

Erskine is to step down as O2 CEO at the end of this year but will retain a seat on Telefónica's board. He said the synergies generated in Telefónica's purchase of O2 amounted to more than the EUR 1.1 billion initially estimated.

O2 Europe accounted for about a quarter of Telefónica consolidated revenues in the first nine months of the year, which amounted to EUR 42 billion. Telefónica's share price closed yesterday down 1.65 percent at EUR 22.70.

[Copyright EL PAÍS, SL. 2007]

Subject: Spanish news

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