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O2 shed fewer home broadband customers during the final three months of the 2011, it has been revealed.

The broadband provider lost another 5,000 net subscribers between October and December, leaving it with a total of 620,300.

But in the third quarter of 2011, O2 lost 27,600 net customers - suggesting progress is being made.

In a statement, Telefonica - the parent company of O2 - said the UK market remained "intensely competitive" last year amidst a challenging economy.

"Against this backdrop, and after an initial focus on value over volume during the first half, the company decided to focus on regaining commercial momentum," it stated.

Telefonica added that it had also sought to leverage a new smartphone tariff structure launched in August and improve proactive retention management in the contract segment.

"Excluding the impact from mobile termination rate cuts, revenues would have increased 0.3 per cent year-on-year in 2011," the firm stated.

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