O2 plans domination with iPhone

7 December 2007 14:10 GMT / By Katie Scott

O2 is confident of a massive boom in custom after winning the exclusive rights to sell the iPhone in the UK even though reports so far show that the iPhone has received a lukewarm reception in the UK.

Matthew Key, the soon-to-be head of O2, told journalists at a press conference in London of his faith that the iPhone would result in a mass migration to his company's service.

"Over time, three out of four customers of the iPhone will be new O2 customers, because you can only get the iPhone by becoming a customer of O2", he said. And he added that many of those buying iPhones would be leaving another provider.

Key would not reveal exact sales figures for the handset, which went on sale in the UK on 10 November, but did say that they had been in line with expectations.

He would also not be drawn on the commercial value of the agreement between O2 and Apple either.

The current O2 chief, Peter Erskine, also spoke at the conference, detailing the company's plans to "consolidate" its position as market leader in the UK, while also strengthening its presence in Germany.

Erskine pointed to broadband provision as key to growth saying: "Over the next three years there will be eight million additional DSL customers in each of these two countries [UK and Germany] and we intend to take quite a share of it."

Full tags

Phones, Mobile phones, iPhone, O2, Apple, Broadband