MmO2, the demerged wireless business formerly owned by BT, has
handed the launch marketing task for its O2 consumer brand to a start-up
agency.
The new shop has been founded by two of the key executives responsible
for the global launch of the Orange brand, former WCRS creative director
Rooney Carruthers and strategy director Charles Vallance.
MmO2's vice-president of global marketing, Will Harris, worked with the
pair at WCRS and it is understood that the wireless company was eager to
work with a team that had a proven track record in launching a major
consumer brand from scratch.
O2, which was due to launch on April 19, but has now been delayed for a
month, will be backed by a massive £150m marketing budget across
Europe.
Abbott Mead Vickers BBDO, which picked up the advertising task last year
without a formal pitch, is still engaged to work on the brand in the
long term. However, its hold on the business is likely to be threatened
by the appointment of the start-up to handle the launch work.
BT demerged its mobile arm BT Wireless as a major part of its drive to
cut its debt mountain last November.
MmO2's brands, which include BT Cellnet in the UK and mobile internet
business Genie, are all to be rebranded as O2.
The launch of the O2 brand will trigger one the biggest shake-ups in the
UK mobile phone marketplace. Its first marketing activity will be key to
arresting the company's decline in the UK market.
BT Cellnet had 10.9 million UK customers at the end of September 2001,
according to the most recent subscriber figures, placing it behind
Orange and Vodafone for the first time. The next figures are due to come
out on February 7.
Rival Deutsche Telekom is to rebrand One 2 One and all its other
wireless interests as T-Mobile later this year.