Work is underway to transform the failed Millennium Dome into a major sporting, exhibition and live music space. Contractor Sir Robert McAlpine is building “The O2”, a big development boasting 23,000-seat arena, a British music hall of fame and a jazz and blues street in south-east London. Mobile phone company O2 and Anschutz Entertainment Group are the developers. They say all O2 customers will be given VIP privileges. It’s due to open in 2007.