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Background

A Telefónica company, O2 has more than 35 million customers across Europe and comprises mobile network operators in the UK and Ireland, along with integrated fixed/mobile businesses in Germany and the Czech Republic. It owns 50% of the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany respectively as well as having 100% ownership of Be, a leading UK fixed broadband provider. In addition, the group includes O2 Airwave, which supplies secure digital communications to the emergency services and other public safety organisations.

The Situation

As a leading communications and entertainment provider in the UK O2 had a major mailing requirement – to deliver regular customer statements to its customers.

Although the company had used Royal Mail’s Mailsort service in the past, postal deregulation provided an ideal opportunity for O2 to look at reducing costs in this area and after a period of extensive testing, they chose to utilise UK Mail’s Presorted Business Class service in April 2006.
The Solution The collaboration with UK Mail has allowed O2 to more efficiently plan and manage their customer mailings.

The collaboration with UK Mail has allowed O2 to more efficiently plan and manage their customer mailings.

The Presort process with O2 has been carefully designed and scripted. O2’s mailing house in Gloucestershire prepares the customer statements in C5 envelopes that are placed in specially designed UK Mail boxes for storage and security.

These statements are then distributed to 69 Inward Mail Centres overnight with each bag barcoded for security and traceability scanning during every part of its journey through the UK Mail network. The chain is only complete when a signature is collected for every sealed bag handed over to the local Royal Mail sorting office.

The collaboration with UK Mail has allowed O2 to more efficiently plan and manage their customer mailings. ‘Definate day’ services guarantee when O2’s customers will receive correspondence while for less time sensitive items O2 takes advantage of UK Mail’s state of the art sort equipment for cost-reduced unsorted mailings.

The Feedback

"I am extremely pleased with how the implementation went. Not only have we benefited from major cost savings, but we have also enjoy improved service levels and greater transparency of the mail process. The success of the partnership means we will soon be sending large letters and packets through the UK Mail network."

Susan Smith, Billing and Services Manager, O2
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