- Telefónica España doubled the speed of O2‑branded fibre services at no extra cost.
Telefónica España doubled the speed of O2‑branded fibre services at no extra cost. The change began in mid‑February 2020 and has bumped those with a 300Mbps service to 600Mbps, with the monthly cost remaining at €50. The operator aimed to fully roll out the increase by 18 March 2020. Under the O2 brand, Telefónica charges €50-per-month for a convergent plan featuring “unlimited” landline and mobile calls, 25GB of mobile data, and up‑to-600Mbps broadband (following the speed increase). It is unclear whether the upgrade will benefit subscribers on all plans, or just select packages. The O2 brand remains positioned as a budget, converged alternative in Spain, particularly with a view to combating aggressive fourth player Grupo MÁSMÓVIL, which offers a 600Mbps fibre‑only service from €39.90. In Telefónica’s annual results presentation for the year to 31 December 2019, Chief Operating Officer Ángel Vilá positioned the O2 brand as part of a multi‑layered commercial strategy, rather than simply a vehicle for customer retention. Although he acknowledged the O2 offering is a slight drag on average revenue generated by converged customers in Spain, he also noted its high levels of customer loyalty to date, and its effectiveness in rounding out the operator’s proposition without raising material concerns on cannibalisation.