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Mobile operator and internet service provider (ISP) O2 saw a decline in its number of broadband subscribers in the first three months of 2011.

Over the course of the quarter, its subscriber base fell from 671,600 to 669,200, following on from worse-than-expected growth in the second half of 2010.

According to, many subscribers could have opted to move away from the ISP following a rise in prices in February 2011, which saw those with older packages hit harder.

The price rise came in addition to the VAT hike in January.

Last week saw O2 launching its business broadband services, which are aimed at homeworkers and small and medium-sized businesses.

The Home Office package will support two computers and offers 20Mb download speeds, 1.3Mb upload speeds and 150GB usage allowance for £20.50 a month.

Office 10 is the next tier, and offers support for ten computers, faster upload speeds of 2.5Mb and usage of 300GB for £27.50 a month for new customers.  

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