O2 was born with the idea of offering affordable and, above all, simple rates. When they began their journey in our country, their rates were quite attractive for their price, but the competition has ended up taking over. In fact, Movistar itself has taken over, so it is more sensible to carry O2 to Movistar than from Movistar to O2.
Movistar: fiber 8 euros cheaper per month
Yesterday, Movistar lowered its offer of only 300 Mbps symmetric fiber. Until now, the rate cost 29.90 euros during the first 6 months, going to 38 euros later. However, now the fee costs 29.90 euros for the first 12 months, matching in price and duration the fiber-only offers offered by operators such as Vodafone, Orange or Jazztel.
The fiber-only O2 rate, on the other hand, offers 300 Mbps speed, but with a price of 38 euros per month. Thus, it does not make any sense to contract it with O2, since with Movistar we have the same conditions: landline with unlimited calls, without permanence, and free installation and router, with the advantage of save us 8 every month for the first 12 months, and then we go on to pay the same.
Thus, Movistar has been offering more aggressive rates to compete with what other operators offer, but O2 has focused so much on converged that it has dropped its fiber-only rate. Something like a simple speed upgrade to 600 Mbps It would make it more attractive to some, but it would also step on Movistar’s own 600 Mbps offer, which costs 38 euros for the first 3 months, going to cost 44 euros later.
O2 prefers to bet on convergence
As O2 rates are now, it is clear that the operator prefers to attract users with its convergent rates, having for example 500 Mbps fiber and 30 GB on mobile with unlimited calls for 44 euros per month. For 6 euros more than for 300 Mbps fiber, we have a rate that makes it meaningless to hire the mobile line separately.
O2’s 300 Mbps fiber rate could receive two improvements to make it more attractive compared to the competition, such as increasing the speed to 600 Mbps, or reducing its price, for example, to 35 euros. With this, they would be able to avoid one of the drawbacks that fiber has in its rivals: permanence. With Jazztel (600 Mbps for 29.95 euros) it is 9 months of permanence. With Orange (600 Mbps for 30.95 euros) it is 12 months. With Vodafone (600 Mbps for 30.99 euros) it is also 12 months. Digi, which plays in another league, offers 300 Mbps for 25 euros a month, and 1 Gbps for 30 euros (10 Gbps already in Madrid), with 3 months of permanence.