O2 announces stellar set of results - the last as an independent company

MMO2, known by it's catchy brand O2, has just announced it's last set of results before becoming a subsidiary of Telefonica. The UK's largest mobile phone operator and the fastest growing in Germany, impressed analysts today with sizeable market share gains in both the UK market and Germany.

And these results are all the more impressive given that both the UK and German markets are plenty saturated, so that means O2 is stealing large chunks of customers from their competitors. And they're doing it the consumer electronics way, a la Apple, they're wowing the market with great branding, powerful and simple marketing and great products.

And it's not surprising that O2 are being so successful, for they make all the other European operators look, well a tad boring (except perhaps for 3). And the common denominator for both O2 and 3 is that they are the small independents with whacky brands. They have had to succeed through marketing and innovation as they do not have the scale of the likes of Vodafone, T-Mobile or Orange.

And both operators have become the best value providers in their respective markets. Which proves that the volume end of the mobile phone market has a lot to do with simplicity and value.

The biq question is whether Telefonica can allow O2 to continue with it's magic formula or will they smother O2 much as France Telecom did with Orange. My money's unfortunately with Telefonica dulling O2. Which would ony be good for 3. But I'd love to be proved wrong. Come on Telefonica.