Business fact-sheet

Telefónica O2 UK

Find out more information about Telefónica O2 UK.

Telefónica O2 Germany GmbH & Co OHG

• DSL service launched and Genion Homezone tariffs refreshed, enabling the company to offer integrated mobile, DSL landline telephony and broadband internet access services
• Accelerated investment in 3G network to attract subscribers and drive up margins
• Launched new discount SIM-only mobile service, FONIC.
• Customers: 16.459 million (mobile, broadband, wholesale).

Find out more information about Telefónica O2 Germany GmbH & Co OHG.

Telefónica O2 Ireland

• Performing strongly in customer and service revenue growth
• Launched flagship O2 'Experience' stores
• Recently launched broadband service
• Exclusive carrier partner for Apple iPhone 3G in the Ireland
• Market leading retail satisfaction scores
• Teamed with Tesco Ireland to launch first MVNO, Tesco Mobile, in Summer 2007  
• Customers: 1.716 million (mobile)

Find out more information about Telefónica O2 Ireland.

Tesco Mobile

• Tesco Mobile is a 50/50 joint venture between Telefónica O2 UK and Tesco Plc
• Offers customers supermarket style offers and the chance to earn Clubcard points
• Addresses family market through Tesco's nationwide network of supermarkets and  smaller 'Metro' shops
• Introduced new pricing initiatives such as a 'Value' tariff and reduced international calling rates
• Customers: more than 1.7 million

Tchibo Mobilfunk

• A 50/50 joint venture between Telefónica O2 Germany and Tchibo GmbH launched in October  2004
• Offers a unique and competitively priced pre-paid mobile phone service for the German market
• Combines the marketing and sales strengths of Tchibo with Telefónica O2 Germany's high quality  network and track record for innovation
• Customers: 1.1 million (mobile)

Manx Telecom – Isle of Man

• Launched Europe's first, super-fast 3G network (or HSPDA)
• Now leading in m-commerce
• Customers: 77,000 fixed and 75,000 mobile

Find out more information about Manx Telecom.

Telefónica O2 Czech Republic

• Launched the O2 brand in September 2006
• Leading telecommunications provider in the Czech Republic. Offering complete portfolio of voice and data products and services. 
• In September 2007, Telefónica O2 Czech Republic acquired 100% of the shares in DELTAX Systems a.s., one of the top ten system integrators in the Czech Republic
• Customers: 7.698 million (mobile, fixed, broadband).

Find out more information about Telefónica O2 Czech Republic.

Telefónica O2 Slovakia

• A wholly owned subsidiary of Telefónica O2 Czech Republic.
• Commercial service launched on 2 February 2007. 
• Customers: 0.417 million (mobile)

Find out more information about Telefónica O2 Slovakia.

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Data leadership – Leading in mobile data services

O2 has one of the most active customer bases for data and content in Europe. More than 40% of our 47.6 million customers in the UK, Germany, Ireland, Czech Republic and Slovakia are using data services on a regular basis.

Data services revenue - which includes text and other messaging services (e.g. email and picture messaging), as well as services such as music, content downloads and information services - now accounts for 30% of Telefónica O2 UK's service revenue and 27% across Germany and Ireland.

O2 continues to maintain its strong position in the market for mobile data products and with the iPhone- the fastest-ever selling product for O2 in the UK - the company has a clear differentiation.

Additionally, O2 has built a strong customer base for mobile Internet services through its O2 Active service. O2 Active is a branded, icon-driven menu that offers customers a simple means to access and navigate a growing range of mobile data and multimedia services such as picture messaging, games, video clips, chat, web browsing and information services.

Several O2 branded devices have been launched successfully during the past year, including the updated XDA range - with the XDA Zest and Serra.

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Strengths

O2 and Telefónica
On October 31, 2005, it was announced that the Spanish-based telecommunications group Telefónica S.A. had made a cash offer to acquire O2. The O2 Board decided to recommend the offer at 200p in cash for each O2 share, valuing O2 at approximately £17.7 billion.

It was announced on Monday, January 23, by Telefónica S.A. that it has acquired more than 75% of the voting rights attaching to O2 plc shares and that its Offer to acquire O2 had gone unconditional in all respects.

The enlarged company continues to build on O2's track record of operational delivery, the strength of its brand, and the momentum it has established in all its markets. It brings together two strong, successful, growth-orientated companies, and creates a new, strong pan-European/global telecoms player.

The combined entity is second largest global wireless operator outside of China, in terms of active subscribers with more than 261.4 million customers. In addition, the combined group is also be the world's 2nd most valuable telecom operator with a market capitalisation of €106.1 billion.

75% of the new company is mobile - recognising the vital role of mobile as the engine for communications growth, particularly in the area of mobile data services.

European footprint of cohesive wholly owned businesses

Our mobile businesses are wholly owned, enhancing O2's ability to manage them efficiently and on a cohesive basis. United under a single strong brand.

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The Board

The Board of Telefónica Europe is responsible for the overall Group strategy and competent management of the affairs of the Group. The Board comprises the Chairman and Chief Executive Officer, the Chief Financial Officer, eight Executive Directors and seven Non-Executive Directors.

Profiles of each Board member are available at: www.o2.com/board

Matthew Key	Chairman and Chief Executive Officer, Telefónica Europe plc
Pilar López Álvarez	Chief Financial Officer, Telefónica Europe plc Executive Director
Salvador Anglada Gonzalez	CEO Telefónica O2 Czech Republic Executive Director
Ronan Dunne	CEO Telefónica O2 UK Executive Director
Danuta Gray	CEO Telefónica O2 Ireland Executive Director
Simon Linares	Group HR Director, Telefónica Europe plc Executive Director
Richard Poston	Director Corporate Affairs, Telefónica Europe plc Executive Director
Rene Schuster	CEO Telefónica O2 Germany Executive Director
Sir David Arculus	Non-Executive Director
Luis J. Bastida	Non-Executive Director
Peter Erskine	Non-Executive Director
Cath Keers	Non-Executive Director
Julio Linares López	Non-Executive Director
Antonio Viana-Baptista	Non-Executive Director
Eduardo Zaplana	Non-Executive Director

Full biographies of each Board member are available at: http://www.o2.com/board

Matthew Key, Chairman and Chief Executive Officer, Telefónica Europe plc

Matthew Key was appointed Chairman and Chief Executive Officer of Telefónica Europe plc on 1 January 2008. At this time, he also joined the Telefónica, SA. Executive Committee.

Prior to this, Mr. Key was the Chief Executive Officer of the UK business, a position he held since February 2005. Mr. Key joined the company in February 2002, as Chief Financial Officer, where he was responsible for strategy, business development, regulatory functions and the establishment of the Tesco Mobile joint venture.

Before joining O2, Mr. Key worked with Vodafone as UK Operations Finance Director for four years. He has also held various financial positions with Kingfisher, Coca-Cola, Schweppes and Grand Metropolitan.

Pilar López Álvarez, Chief Financial Officer, Telefónica Europe plc

Pilar is a Business Studies graduate. She joined Telefónica after working for several years at JP Morgan in London and New York where she worked her way up to Vice President. Pilar joined the Telefónica Group in 1999 in Telefónica de España's Strategic Planning Department. In May 2000 she was appointed Director of Management Control at Telefónica SA. Two years later, in 2002, she joined Telefónica Móviles S.A. to head up this company's Management Control function. In October 2006 she was promoted to Director of Strategy and Business Development at Telefónica España.

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Milestones

15 July 2009: O2 Expands into Personal Finance with Launch of O2 Money.

7 July 2009: Telefónica and Palm announce Palm Pre exclusive in Europe.

22 June 2009: First O2 and Vodafone UK shared network site live; infrastructure deal delivers significant coverage improvements.

19 June 2009: O2 launches two new iPhones, the iPhone 3G S 16GB and iPhone 3G S 32GB.

24 April 2009: Telefónica O2 Germany launches O2 o - revolutionary tariff with no basic fee and no fixed contract.

7 January 2009: Deutsche Post World Net and Telefónica sign €350m pan-European telecoms services agreement.

10 September 2008: O2 World, Berlin, opens its doors for the first time.

11 July 2008: Apple iPhone 3G launches in the UK and Ireland, exclusively on O2.

2 July 2008: O2 and Live Nation announce The O2 in Ireland.

27 June 2008: The O2 in the UK celebrates its first birthday.

17 April 2008: Telefónica O2 UK launch mobile broadband service.

28 February 2008: Apple iPhone launches in Ireland, exclusively on O2.

9 November 2007: Apple iPhone launches in the UK, exclusively on O2.

3 October 2007: O2 launches new broadband service to the UK market.

1 October 2007: Telefónica and Yahoo! partner to bring global mobile services to more than 100 million customers.

18 September 2007: Apple chooses O2 as exclusive carrier for iPhone in the UK.

30 August 2007: Telefónica launches 'Fonic' discount mobile service in Germany.

26 July 2007: O2 introduce full Eurotariff to bring down prices of incoming and outgoing calls in the EU countries and Ukraine by more than 40%.

9 July 2007: O2 Ireland launches broadband service.

19 April 2007: Telefónica sells Airwave to Macquarie for €2,982 million.

7 March 2007: O2 first mobile operator in Ireland to trial broadcast mobile TV, in partnership with Arqiva.

2 February 2007: O2 Airwave awarded London Underground contract.

24 January 2007: O2 enters its fifth European market with Slovakia.

23 October 2006: O2 and Arqiva to commence first consumer trial of broadcast mobile TV in Ireland.

18 October 2006: O2 and Movistar offer free incoming calls when travelling in Europe.

1 September 2006: O2 launches in the Czech Republic.

2 August 2006: Telefónica O2 wins tender for 3rd mobile licence in Slovakia.

20 June 2006: O2 enters UK broadband market with purchase of Be.

11 May 2006: O2 and Telefónica Móviles announce 'My Europe' - delivering significant roaming benefits for customers.

28 April 2006: Integration of Czech Republic businesses approved. Peter Erskine becomes Chairman of supervisory board.

30 March 2006: O2 Airwave awarded £350m Fire & Rescue services contract.

1 March 2006: Eurotel and Ceský Telecom are joining forces to create the telecommunications company of the future.

23 January 2006: O2 announced best ever quarter customer growth in the UK and Germany.

23 January 2006: O2 announced new Board and Telefónica S.A. cash offer went unconditional in all respects.

13 January 2006: O2 Germany became official partner of the BMW Sauber F1 Team.

11 November 2005: O2 Airwave successful in its bid to equip all fire and rescue services across England with a new resilient and secure voice and data communications service.

1 November 2005: Europe’s first HSDPA network launched.

31 October 2005: Telefónica S.A. announced an cash offer to acquire O2, valuing it at £17.7 billion.

26 September 2005: O2 announces UK launch of i-mode®.

22 September 2005: Mobile TV trial goes live in Oxford, UK.

19 July 2005: O2 airwave wins Ambulance communications contract.

11 May 2005: Details given of mobile TV trial in Oxford.

10 May 2005: New customer service centre to create 1500 jobs in Glasgow.

1 April 2005: O2 Airwave delivers UK national police communications service.

14 March 2005: O2 plc replaces mmO2plc following restructuring.

5 December 2004: Plans for Europe's first HSDPA network announced.

29 November 2004: O2 signs long-term agreement with NTT DoCoMo for i-mode.

26 September 2004: First integrated 3G, WLAN and GPRS service launched by O2 UK.

12 July 2004: O2 Germany and Tchibo set up joint venture.

21 March 2004: O2 Germany launches 3G.

23 February 2004: Starmap - new brand name announced for the mobile alliance.

1 October 2003: The mobile alliance is formed to serve customers across Europe.

24 June 2003: O2 Germany tops 5 million customers.

4 June 2003: O2 UK and Tesco create Tesco Mobile joint venture.

3 June 2003: Sale of O2 Netherlands completed.

19 November 2002: Germany EBITDA positive - a year ahead of schedule.

1 May 2002: Launch of O2 consumer brand.

5 December 2001: Europe's first fully operational 3G network goes live on the Isle of Man.

19 November 2001: mmO2 demerged from BT to become an independent wholly owned company.