O2 is the brand offered by the European Telecommunications company Telefonica Europe, providing both fixed and mobile communication products. The O2 UK mobile network was born out of the 1990's demerger of BT Cellnet, as the perceived value of mobile communications dropped., this took place on 17th November 2001 resulting in the birth of O2 UK. In January 2006 the Spanish company Telefonica Europe acquired O2 UK for the largest telecommunications buy out in history, paying an astonishing £17.7 billion as a cash purchase.

As at December 2007, O2 had more than 40 million fixed and mobile customers across Europe and 29,000 employees across the Group. O2 UK has 18.4 million customers. This makes O2 one of the biggest companies and most valuable brands in the world. It sits at the top of the table in terms of mobile telecommunications companies.

O2 works hard to provide a great service to its customers and set itself apart from its competitors. As a result the company offers great UK coverage and highly competitive rates. One way it has set itself apart is through ventures with other companies and exclusive deals. O2 also work with Tesco, one of the worlds largest retail brands, to provide low cost mobile service through the Tesco Mobile network. O2 also used there considerable clout to set up an exclusive deal with the Apple I-Phone, as the only network through which this highly desirable phone is available.

O2 has developed a strong brand in the public domain, with high level sponsorship deals and large scale advertising campaigns. O2 has also sponsored and funded the development of the O2 Arena in London, a large live music venue. This offers O2 customers early availability on tickets for some of the best live events in the Uk and Europe. Both Arsenal Football Club and the England Rugby team are sponsored by O2, allowing the brand to adorn some of the most high profile spoting events in the football and rugby calendars.

In terms of price plans O2 is very competitive, offering great packages and “Bolt-Ons” across all of its plans. O2 offer prepay monthly pay as you go, something unavailable through other networks. Pay monthly deals start from £15, with a variety of online and in shop offers which give the customer a number of differing benefits ranging from free texts to internet access through their phone. Mobile broadband is available from £15 with a free Samsung netbook available on price plans from £30 a month.

All in all O2 offers good rates, coverage, technology and customer service. There are few larger companies in the market place that can compete with O2, this enables its customers to benefit. The service will continue to grow improve over coming years as smaller network providers struggle to operate in a market place dominated by large multinational companies, O2 holds great market position, leading the the market.