O2 raises stakes in mobiles battle

MOBILE phone companies are finally going to war, with O2 leading the charge on new cut-price offers to business customers.

In a sweeping change that will bring big savings for business customers, O2 has unveiled a price plan that offers "unlimited free calls for 1.5 million mobile users".

This is the first time an offer of unlimited calls to such a large market - the majority of which can be made without charge has been launched in the Republic.

The O2 Business Unlimited plan gives free O2 to O2 calls in Ireland, for a flat fee of €20 a month per user excluding VAT.

O2 boasts over 1.6 million customers in Ireland. The cost of business calls to non-O2 mobiles or landlines will cost 20 cent per minute, under the new plan which was designed to "shake up the business market", and is expected to be hugely popular.

The unveiling of Business Unlimited yesterday is seen as a strategic move by O2 to poach customers from Vodafone their largest competitor whose share of the market is two million customers.

Vodafone recently launched a range of Wireless Office Share tariffs, under its Perfect Fit for Business Plan.

While the tariffs offer "unlimited free calls to all mobiles on the plan and up to 10 nominated company landlines," it does not offer unlimited free calls to any numbers not listed on the customer's individually selected plan.

Commenting on the launch of Business Unlimited, Paul Farrell, O2 Ireland director of marketing, said: "This move goes far beyond free calls internally between work colleagues.

"In effect this new package gives business customers free calls to a community of over one and a half million people whether they are colleagues, customers, suppliers, friends or family.

"This announcement will shake up the business market and means that we have the best and most transparent business pricing offer."

The deal is seen as particularly attractive for small and medium sized enterprises.

A Vodafone spokeswoman responded by saying: "The market is very competitive at the moment, and we do respond to our customers' needs and demands.

"This was obvious recently when we dropped some of our roaming charges. The company continuously monitors competitive pricing offers and as market leader, we will continue to ensure that customers enjoy best value, quality and service from Vodafone."

Meanwhile 3 Ireland's newest phone network has also launched a number of special deals for April. These include a 1000 Anytime Any Network Voice Minutes for €100, when a customer signs up for certain contracts.

More info: www.o2.ie