O2 has confirmed it is to sponsor London's most prominent white elephant by renaming The Millennium Dome "The O2".

The mobilephoneco - which is axing some 500 jobs including some 200 IT staff as part of a major restructuring - is spending £6m a year for its tie-up with London's big tent.

Teaming up with giant entertainment group Anschutz Entertainment Group (AEG), O2 intends to help rejuvenate The Dome and surrounding area. The Dome - sorry, "The O2" is due to be re-open in 2007 providing a venue for music, shows and sports events.

As part of the deal, O2 will be able to provide this content to its punters - something execs believe will be important as they try to hang on to their existing users.

A spokesman for O2 shrugged off claims that it was sponsoring a monument of ridicule. "This is a bold move," he said, "and is in keeping with our emphasis to back music and entertainment."

The venue is also expected to sport a massive "O2" logo on its dome-shaped roof. ®

Related stories

O2 to axe 500 jobs...
200 IT workers face O2 axe
CWU 'shocked and dismayed' at O2 job losses
O2 goes down the pan
O2 trials mobile TV
O2 and EasyAir avoid High Court spat
O2 gets protective over 'bubbles'
O2 creates 1,500 Glasgow jobs