Editorial: O2 story illustrates the true power of good ads.(Brief Article)(Editorial)

How remarkable that O2 should be breathing down Orange's neck in the race for the lion's share of Britain's mobile phone market. And how appropriate its astonishing transformation should be marked with the award of the Grand Prix to its agency, Vallance Carruthers Coleman Priest, at this year's IPA Effectiveness Awards.

Little more than two years ago, O2 was barely on the starting blocks. Orange was the cool brand with success built on a steady flow of mould-breaking advertising. The contrast with O2 could hardly have been more stark. Newly demerged from BT, it was haemorrhaging money. It had no recognisable brand and appeared ripe for takeover.

Today, a revitalised O2 appears to be stealing Orange's clothes. With a market share now almost equal to that of its great rival, O2 has, dare one say it, actually become trendy.

Meanwhile, Orange's momentum has faltered. Its advertising by Mother has been the subject of much unflattering criticism and for lacking the confidence of its launch work. Its churn rate has jumped from 19.9 per cent to 26.1 per cent in the first half of this year and onlookers ask if its owner, France Telecom, is running it on a leash ...