O2 today announces its range of exclusive handsets for Christmas 2006.  With a total of 68 handsets for pre pay and post pay customers the range also includes a variety of own-branded handsets as well as handsets from leading manufacturers. The handset portfolio includes two O2 own-brand devices; O2 Ice and O2 Jet.  Both were developed from customer feedback and designed specifically for O2. ·        The O2 Ice is O2’s latest own-brand consumer 3G handset.  A slim candy-bar shaped handset with a stylish white exterior, the O2 Ice is a feature-rich device available at an entry level price on both pre and post pay.  ·        The O2 Jet is a simplified handset with streamlined functionality.  The O2 Jet has an exceptional battery life, with over 22 days on standby and 9.9 hours of talk-time, beating the nearest leading competitor device by over 67%*when tested. O2’s handset portfolio this Christmas reflects the work O2 has undertaken to understand better what customers want from their handsets.  O2 is also offering handsets exclusive to O2 customers from major manufacturers including Sony Ericsson, Samsung and Motorola.  The stylish silver Sony Ericsson K800i, as used by James Bond himself in the new Bond movie “Casino Royale”, is available exclusively to O2 customers until the end of January 2007.  Consumer segmentation has enabled O2 to identify what customers want and to build a device portfolio that strongly delivers against their expectations.  Whilst 2.5G services cover customers’ current requirements, O2 expect 3G to be the default in the vendor portfolio in 2007, together with new services such as Mobile TV as consumer demand increases for the newer services.  Matthew Key, CEO of O2 UK commented: “Working with our customers, this year we have built our handset range on insights into what they say they want.  We have extended our handset strategy to ensure that we offer the best in music, photography and just plain high quality voice handsets at the right price point to match our customers’ needs.”

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