O2 (Ireland)

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This article is about the Irish telecommunications company. For other uses, see O2 (disambiguation).
Telefónica Ireland Limited
Type Private (subsidiary of Hutchison 3G)
Industry Telecommunications
Broadband Internet access
Predecessors 1996 (1996) Esat Digifone
Founded 1997
Founders Esat Telecom Group
Headquarters 28–29 Sir John Rogerson's Quay, Dublin, Ireland
Area served Ireland
Revenue Decrease905 million (2009)[1]
Employees 1,787 (2006 (2006))
Parent Hutchison 3G
Website www.o2.ie

Telefónica Ireland is a broadband and telecommunications provider in Ireland. The company is marketed and trades as O2 (typeset as O2). O2 Ireland was previously called Esat Digifone when it was owned by Esat Telecommunications (and Telenor) from 1997 to 2006. In 2006, the company was acquired by Telefónica, which is a subsidiary of Telefónica Europe. In June 2013, Hutchison Whampoa announced it would acquire O2 for €780m.[2]

History[edit]

1997–2000: Origin[edit]

Esat Digifone

Esat Digifone was launched in 1997 as a joint venture between Esat Telecommunications and Telenor.

2000–2001: BT ownership.[edit]

In 1999, Esat Telecom and Telenor began to dispute how Esat Digifone should be operated. Telenor removed the word Esat from the companies name, and began the attempted removal of Denis O'Brien as chairman of Digifone. Esat Telecom retaliated by threatening to take legal action against Telenor, and make repeated offers to buy Telenor's share of Digifone.

In November 1999, Telenor placed a bid for the entire share capital of Esat Telecom as a way of resolving the conflict. The bid was rejected by the majority shareholders of Esat Telecommunications who voted against the takeover. In January 2000, British Telecommunications counteracted Esat Telecom failed bid by placing its own bit to buy Telenor's shares in Digifone.

In January 2000, British Telecommunications made a takeover offer for Telenor which was backed by Esat Telecommunications shareholders. Esat Telecommunications became a wholly owned subsidiary of British Telecommunications and was delisted from the stock market. When BT acquired Esat, they began integrating the business along with its Northern Ireland subsidiary, BT (NI). This eventually became BT Ireland. However Esat Digifone was not part of the operations integrated with BT's existing Irish operations. Instead, it became part of the BT Wireless division within BT, and was briefly rebranded simply Digifone. This branding lasted for less than six months.

2001–2005: Demerger from BT Ireland[edit]

In 2001, the BT Wireless division became mmO2 plc, a separate company, through a demerger from BT. British Telecommunications shareholders received 1 BT Group and 1 mm02 share for each British Telecommunications share they held. After the de-merger, most of mm02's operations, including Digifone, were rebranded O2. mmO2 plc later became O2 plc and remained an independent company until 2005.

2005–2006: Telefónica transition[edit]

On 31 October 2005 it was announced that Telefónica, S.A., the Spanish telecommunications company, had made a recommended takeover bid for O2 Ireland's parent company, O2 plc. This has been approved by shareholders and O2 was officially purchased in mid February 2006. The O2 brand is now used in several countries for Telefónica's mobile operations outside Spain and Latin America, where Telefónica fixed & mobile is known as movistar. In January 2009, it was revealed that Ireland is nearly the most profitable market in the world for multinational mobile operators like O2.[3]

2006-2013[edit]

On 23 March 2009 Vodafone and O2's parent company Telefónica announced a deal to share their existing networks in Ireland and rollout future infrastructure jointly.[4]

On 6 April 2011 it was announced that Telefónica O2 Ireland and Eircom had agreed a new network sharing partnership.[5]

2013: Hutchison 3G merger[edit]

On 24 June 2013, it was announced that Hutchison Whampoa would acquire Telefónica's Irish mobile operations for €780 million, to be merged into 3 Ireland upon completion of the deal.[6][7][8] The deal was cleared by the EU in June 2014. On 15 July 2014, the acquisition was fully completed.

Current services[edit]

O2 is the second largest telecommunications provider in Ireland, with approximately 40% market share or 1.6 million customers. The company's STD prefix is 086, but following the introduction of full number portability, some O2 Irish mobile numbers now feature prefixes starting 087, 085, 089 or 083, as customers may switch provider but keep their old phone number.

The company provides WAP and GPRS services under the O2 Active brand. In October 2005, O2 Ireland launched a version of NTT DoCoMo's i-mode service. The company holds a UMTS licence, and was the third Irish operator to offer 3G services, after Vodafone Ireland and 3 Ireland, offering services in some built-up areas in late 2006.

O2 Broadband[edit]

In July 2007, O2 launched its mobile broadband offering in Ireland using HSDPA technology over its 3G network. They provide speeds of up to 7.2 Mbit/s and claim to cover 90% of the population on the least contended Irish 3G network following a recent upgrade[9]

Speak Easy[edit]

Speak easy is the name of O2 Ireland's prepaid service. In 2007 they became the first Irish operator to offer free text messages to all Irish mobile numbers, although it only applied for weekends. However in early 2008 they introduced a new tariff which offers unlimited free text messages to all networks at any time, for life.

The term "speak easy" was introduced when the company was branded as Esat Digifone.

O2 Freedom[edit]

The O2 Freedom plans were introduced in June 2013 which offered 2 main new price plans, Freedom talk and Freedom Internet. O2 was the first Irish operator to offer free calls to all networks at any time on prepay. This offer was Freedom Talk and gave customers Unlimited calls to all Irish mobiles and landlines which required a €20 top up of which €10 was deducted for the offer. Freedom Interent offered 1GB of data and 350 any network texts. Same terms applied as per Freedom talk. In December 2013 the data allowance of 1GB was increased to 7.5GB which O2 advertised as Unlimited Internet. Along with the new price plan O2 also launched a vast amount of prepay addons such as Talk, Text, Data, International Talk and International text.

Corporate affairs[edit]

Company structure[edit]

O2 have recently gone through a restructuring phase, seeing it implement a number of cost-cutting measures which involve outsourcing internal divisions to external companies. O2's IT division was outsourced to IBM Ireland, while the Network Operations division has been outsourced to BT Ireland (who also run the network operations for 3 Ireland). The Network team outsource is limited to the Field Operations team along with some other support functions. The Network rollout team & Transmission team remain in-house to facilitate future network changes. It was more cost effective to retain these divisions in-house.

Charitable activities[edit]

In 2006 O2 chose Irish Autism Action as their charity of choice. The three-year deal involves sponsorship, creating awareness, using O2 staff to assist the charity and using technology developed by O2 to assist children affected by autism. Since 2010, the company's new charity of choice is Headstrong, a charity providing mental health support to young people.[10]

Sponsorship programmes[edit]

O2 over the years has entered into some very high profile sponsorship arrangements. In 1998 then ESAT Digifone committed its support to the Hurlers & Footballers of Cork. They have remained proud sponsors of Cork GAA for the past ten years.

Another high profile sponsorship agreement is their association with the Irish Rugby Football Union and the Ireland national team. Building on their rugby links with Shannon RFU, O2 joined forces with the top level of rugby in Ireland. They also sponsored the West Stand at Ireland's former home ground, Lansdowne Road.

They were also the title sponsor of one of the country's most high profile venue, the "The O2", now renamed the "3Arena".

Chief executive[edit]

Tony Hanway is Chief Executive of Telefónica Ireland, a position to which he was appointed in September, 2011.[11] Hanway first joined Telefónica in Ireland in 2005 as Head of Customer Care, subsequently becoming Consumer Sales Director. Immediately prior to his current role, Hanway headed up the Consumer division of Telefónica in the Czech Republic, managing a team of over 4000 people across the retail, online and customer care functions.

Criticism[edit]

In July 2004 the company admitted overcharging 71,000 customers following a review of its systems.The disclosure means that 136,535 O2 subscribers - more than 10 per cent of its customer base - were overcharged.[12]

Analysis by the Sunday Independent in January 2006 showed the massive margins being earned by Vodafone and O2 in the country are costing Irish mobile phone users about €300m a year. If the mobile phone companies were to cut their Irish margins to the group average,O2 customers would end up paying €84.07 less every year (€7 a month less).[13]

The European Commission upheld a ruling by the Irish regulatory body, Comreg, that the Irish mobile phone market needed greater competition, and acknowledged that "tacit collusion possibly existed between O2 and Vodafone".[14]

In May 2007, O2 Ireland management announced that the entire O2 Ireland technical staff were to be outsourced to a single Managed Service Provider.[15] The next month O2 customers got a busy signal or no dial tone at all when they tried to make calls due to a network glitch. The reason for the glitch remained a mystery at the time because the company's spokesperson couldn't be reached by the media on her mobile, also seemingly affected by the problem.[16]

The Consumers' Association of Ireland lodged a complaint with the Competition Authority over a loophole used by O2 that allows it to bombard customers with unwanted text messages.[17]

The telecoms lobby group ALTO criticised O2 Ireland for its decision to quadruple the revenue it generates from calls to the 1850 LoCall number.[18] This is a fixed price, shared cost service[19] used by charities and a number of public service bodies.

The company was criticised for its monthly subscription fees levied on Irish users of the iPhone, as they represent poor value for money when compared with the services available to customers paying similar amounts in the UK.[20] Less than 48 hours after the much hyped launch of Apple's latest model, owners of all phones on the O2 network discovered they could not access the internet at all due to a network failure.[21] Further criticism has come from iPhone customers regarding the continued failure of O2 to deploy Visual Voicemail. O2 was the only carrier in the world to launch the original iPhone without Visual Voicemail, one of its headline features.[22]

O2 was responsible for the highest number of registered judgments, which financially blacklists those people who do not pay their bills on time in August 2008.[23]

The Advertising Standards Authority have upheld complaints concerning advertisements by O2.[24][25]

In August 2010, O2 was warned by the telecoms watchdog, ComReg, that it cannot move customers to online billing without their explicit agreement.[26]

In March 2011, O2 pleaded guilty to a breach of the Data Protection Act at the Dublin District Court.[27]

In March 2011, it was revealed that Denis O'Brien made payments to the Minister for Communications, Michael Lowry, to aid Esat Digifone's licence bid.[28]

See also[edit]

References[edit]

  1. ^ "Hutchison Whampoa". O2. 2009-12-31. Retrieved 2010-04-18. 
  2. ^ Mulligan, John. "3 Ireland network fails on day of €780m O2 deal". Irish Independent. Retrieved 2013-06-24. 
  3. ^ Webb, Nick (2008-01-20). "Revealed: how mobile firms have shafted you". Irish Independent. Retrieved 2010-04-18. 
  4. ^ "O2 and Vodafone to share network infrastructure", The Independent, Monday 23 March 2009.
  5. ^ “O2 Ireland &Eircom in network sharing deal”, RTÉ News, Wednesday, 06 April 2011.
  6. ^ "Three buys O2 and will now control 40 per cent of Ireland’s mobile market". Business ETC. 2013-06-24. Retrieved 2013-06-24. 
  7. ^ "Telefonica agrees the sale of its operating business in Ireland to Hutchison Whampoa for 850 million euros". Telefónica. 2013-06-24. Retrieved 2013-06-24. 
  8. ^ "Media statement". Telefónica Ireland. 2013-06-24. Retrieved 2013-06-24. 
  9. ^ Ryan, Emmet (2007-07-09). "O2 unveils mobile broadband offering". Electric News Network. Retrieved 2010-04-18. 
  10. ^ "Corporate Sponsors - O2". Irish Autism Action. 2009. Retrieved 2010-04-18. 
  11. ^ "New Telefonica/02 chief executive". Irish Examiner. 2011-09-23. Retrieved 10-08-2012. 
  12. ^ "O2 Ireland overcharges further 71,000 customers". The Irish Times. 2004-07-16. Retrieved 2010-04-18. 
  13. ^ White, Dan (2006-01-29). "The €300m mobile rip-off". Irish Independent. Retrieved 2010-04-18. 
  14. ^ Lowe, David (2005-01-24). "O2 and Vodafone 'may face huge fines'". Irish Independent. Retrieved 2010-04-18. 
  15. ^ Kennedy, John (2007-05-31). "O2 to outsource network management". Silicon Republic. Retrieved 2010-04-18. [dead link]
  16. ^ "No winner of €2m jackpot". Irish Independent. 2007-06-07. Retrieved 2010-04-18. 
  17. ^ Bray, Alison (2007-11-28). "Watchdog to complain over O2 text reminders". Irish Independent. Retrieved 2010-04-18. 
  18. ^ O'Hora, Ailish (2007-04-13). "EU will slash mobile phone roaming tariffs by 70pc". Irish Independent. Retrieved 2010-04-18. 
  19. ^ "Broadband, mobile broadband and phone number change information". Askcomreg.ie. Retrieved 2013-06-24. 
  20. ^ "RTÉ News: O2 Ireland not planning iPhone price cut". RTÉ News. 2008-04-16. Retrieved 2010-04-18. 
  21. ^ Cunningham, Grainne (2008-07-14). "Network failure hits Apple iPhone owners". Irish Independent. Retrieved 2010-04-18. 
  22. ^ Caolo, Dave (2008-02-03). "O2 Ireland defends high iPhone costs". TUAW.com. Retrieved 2010-04-18. 
  23. ^ Noonan, Laura (2008-08-18). "Record numbers face court for unpaid bills". Irish Independent. Retrieved 2010-04-18. 
  24. ^ "Complaints Bulletins". Advertising Standards Authority for Ireland. 2006. Retrieved 2010-04-18. 
  25. ^ "Complaints Bulletins". Advertising Standards Authority for Ireland. Retrieved 2010-04-18. 
  26. ^ "Comreg calls foul on O2's move to billing". The Sunday Business Post. Retrieved 2013-06-24. 
  27. ^ Cunningham, Grainne (2011-03-22). "Top telecoms firms fined for cold-calling customers". Irish Independent. 
  28. ^ McKitterick, David (March 24, 2011). "The billionaire Denis O'Brien, the minister Michael Lowry and a deal shocking Ireland". London: The Independent. Retrieved April 6, 2011. 

External links[edit]