O2 launches fixed-line broadband service

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Mobile phone company O2 has announced its plans to enter the broadband market on October 15th.

The fixed-line service, which will initially be made available to its mobile customers who have monthly contracts, has been described as a "breath of fresh air" for the market by the company's chief executive Matthew Keys.

O2 has also revealed that it hopes to have one million customers using the service in the next three years, despite the fact that the connection will only be available to half of the UK population when it is launched.

It is also expected that package prices will vary depending on the speed of connection that customers desire.

O2's move into the internet market has come weeks after Orange announced plans to close its own dial-up service and offer customers improved broadband packages.

A spokesman for the internet and mobile phone network provider was quoted as saying that the decision to close the service was taken so it could invest new products "more effectively".

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