O2 bids on eBay to boost i-mode traffic

UK mobile operator O2 has announced that it has made auction website eBay available to users of its i-mode mobile internet service.

Users of the service will be able to securely access all standard eBay features such as 'My eBay', 'Items I am watching', 'Items I am bidding on', 'Items I am selling' and 'Items I have won', the company said.

Michiel van Eldik, director of i-mode global content and applications at O2, said: "We expect this service to become hugely popular, underpinning further research showing that seven out of 10 people who buy i-mode handsets use the service, compared to just three that use the available Wap services on their handset."

Goldman Sachs analyst Anthony Noto had highlighted the strength of the online auction place earlier this week, maintaining a rating of 'outperform' on eBay and suggesting that the online auction company is at its best position in a year.

"We believe eBay continues to represent the best business model within the internet sector, as it remains relatively insulated from the heightened competition within e-commerce," wrote Noto in a recent note to investors.