O2 buys The Link stores

[tony-inpo]

The Link has 300 stores around the UK selling mobile phones, and O2 is now to pay ?30 million to takeover the chain from the Dixons store group. More details BBC News Online.

This fits into broadband news, since yesterday O2 paid ?50 million for the LLU provider Be, who have around 10,000 customers spread over 150 exchanges. With O2 acquiring a high street presence it puts them into head to head competition with Carphone Warehouse (Talk Talk) and Orange.

While all three providers look set to share the high street, they may appeal to slightly different sectors of the market, Talk Talk is competing very much on the bottom line price, Orange is driving towards broadband forming the homes main communications link, e.g. OnePhone and video over broadband, finally O2/Be currently command the speed demon area. We've not mentioned Bulldog as they are withdrawing from the retail sector, and how their products sit in the market will depend on the service providers who purchase their forthcoming wholesale services - though if these are not launched soon the competition may prove too fierce.

Source

@adslguide.org/

and

http://www.theregister.co.uk/2005/10/31/telefonics_02/

[kinetix63 Veteran]

With O2 acquiring a high street presence it puts them into head to head competition with Carphone Warehouse (Talk Talk) and Orange.

Not a very well thought out article I don't think. O2 already have a very big high street presence in the UK with stores in pretty much every major town and city.

Personally, I think O2 purchasing The Link is a very bad move. Inevitably, they'll end up selling only their own products. That means if I want to go and get a new phone, then either I've got Carphone Warehouse or Phones4U, OR I've got to go and shop around individual stores.... Don't like it.