The "Tag-a-granny" scheme, which is expected to launch next year, automatically alerts carers or doctors if a relative suffers a fall or goes missing.
The service is part of the telecoms company’s wider strategy to target healthcare as a potential growth area, as it diversifies the brand into additional markets.
Telefónica, O2’s Spanish parent, has a similar scheme in place with the department of health in Spain, providing remote palliative care for individuals suffering from chronic conditions.
According to a report in The Sunday Telegraph, O2 is in talks with the NHS to offer a similar service in the UK.
Vodafone and Orange have both created divisions focused on healthcare, where mobile technology can be used to assist medical staff and patients.
The move into healthcare is part of O2 UK chief executive Ronan Dunne's strategy to develop the company into a brand-led service business.
In July 2009, O2 tied-up with NatWest to launch its O2 Money financial services brand. It has rolled out two pre-paid Visa cards, Load & Go and Cash Manager, which are available only to O2 customers.
In January O2 made a multimillion-pound move into travel insurance, in partnership with underwriter Mondial Assistance.