O2 Mulls Expansion Into Fixed-To-Mobile Services In UK

MOSCOW -(Dow Jones)- U.'s mobile operator O2, a unit of Spain's Telefonica, said Friday that it is considering taking its experience in combining mobile and fixed-line operations to the UK and other markets.

O2 already offers the fixed and mobile combined services - fast broadband Internet access over the fixed-lines as well as via a mobile phone - in Germany.

"Clearly the converged market is a very interesting one," O2's spokesman said. "We're looking at whether that model can work in other markets."

However, he downplayed the media reports that O2 was already looking for acquisitions among Internet service providers in the UK, saying that acquisition is one way of pursuing the strategy, but by no means the only one.

"Basically, it's all options open for the time being," he said.

"We're not looking at any specific assets (for acquisition), absolutely not," he said.

More and more U.K. and European operators are considering offering a range or services through one handset in a hope that lower bills and convenience will attract customers in an otherwise stagnating market.

Company Web site: http://www.02.com

-By Anna Ivanova-Galitsina, Dow Jones Newswires; +7 495 974 80 55; anna.galitsina@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 5th May 2006