MySpace, O2 Hook Up; Service To Go Live In November, Will be Free Through 2007

MySpace has its first European mobile deal beyond Vodafone (NYSE: VOD): a “partnership” with O2 being announced tonight. The mobile service is slated to launch in early November; to speed adoption, O2 users with data-enabled handsets — more than 80 percent of its customers — will have free use through 2007. O2 says, in an internal survey, its customers listed access to their social nets as the number one content priority after search. When the free data period ends, those who want to keep on using MySpace through O2 can choose from one of two plans: one for £7.50 a month (about $15) for unlimited browsing through a handset and one for £30 (about $61) for unlimited use through PC or as cell modem. Vodafone had the jump on MySpace Mobile with exclusives in the UK, France, Germany, Spain and Italy.

Late last month, Fox Interactive Media (NYSE: NWS) launched an ad-supported mobile edition of MySpace. But, for now, it’s limited to domestic U.S. so isn’t an option in the UK.

James adds: This is the way deals should be done. It’s not exclusive, and it’s not charging the customer for something they can get for free online. O2 is simply using MySpace to promote its data services, hoping that as people get used to using MySpace on their mobile they’ll want to keep doing so — and it will also get them used to using the mobile internet and (hopefully) seeing value in that, another good thing for O2. MySpace should like the deal for the same reason — promotion. O2 UK has 15.8 million customers with access to its O2 Active portal, and will put a link for the MySpace deal on its What’s New section. Whatever the limits of operator portals, getting on one is so far the best way to attract mobile traffic.

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