O2 UK is shuttering its smart home service after it experienced a disappointing response from customers.

The Telefónica-owned operator said in a statement that it had required “category-leading take-up” of the service in order to invest in it properly.

However, the undisclosed targets were not achieved during the commercial trial phase of the project, which began in September 2016.

O2 said it took the decision to close the service in November last year and notified customers the following month.

An exact date for the closure of O2 Smart Home, which allows customers to control devices through a dedicated management app, will be announced later this month.

The operator will refund all payments made by customers, including purchases of auxiliary devices and monthly subscription fees, and a 20 percent discount for mobile services associated with the service will be honoured.

Associated devices such as the Tado Smart Thermostat and Yale Smart Lock will continue to work independently after the service shuts down.

A spokesperson said O2 UK “remain[ed] focused on our other live IoT projects such as (connected car service) O2 Drive and moving into our Smart Meter roll-out phase, as well as exploring new opportunities in the IoT space.”

However, the closure is a further blow for the plans of CEO Mark Evans to expand the company beyond telecoms into an adjacent category, after the Store & Share cloud storage service and O2 Guard security offering were shut down in May 2017.

Speaking to European Communications in September, Evans had said he was “pleased with the initial progress” of the smart home service.

Read more: O2 UK searches doggedly for smart home benefits, as analysts cite price concerns

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