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O2 discounts iPhone tariffs

O2 discounts iPhone tariffs

O2 is hoping the discounted tariffs will tempt people into purchasing the iPhone handset.

Mobile operator O2 has announced that it is to 'simplify' tariffs associated with the Apple iPhone, in a move not at all connected with alleged slow sales in the UK.

The expensive gadget is currently only available on a 200 cross-network minute and 200 text messages contract for an eye-watering £35 per month, but the new pricing will increase that to 600 minutes and 500 messages for the same price.

If you're a heavy user and are on the £55-a-month tariff you'll find a yourself a tenner better off each month from February onwards as the mid-range package drops to £45. Finally, the wallet-melting £75 a month tariff offers 3,000 minutes for the chatterboxes out there, but strangely keeps the rather miserly 500 messages of the lower brackets.

Americans reading this will probably be confused at the low figures offered for 'airtime', so an explanation is in order: in the UK it's a seller-pays system for calling mobile phones, and the recipient of the call doesn't have to spend any of their inclusive minutes on anything except outgoing calls.

Another inclusion is a cap for data transfer via the device: although users will still pay a per-kilobyte charge for data downloaded on the phone, this is now capped at £1 a day in a move not at all reminiscent of rival operator T-Mobile's Web-n-Walk package.

O2 is clearly hoping that shaving the cost of ownership will help boost sales of the device, which is currently perceived in the UK as being just too damn expensive no matter how smart an interface it has. The company is probably also hoping to stem the tide of unlocking: it's estimated that one million iPhone handsets have been hacked to operate outside the mandatory contract.

Sadly, although the iPhone/O2 contract may be becoming more reasonable, there is still no sign in the purchase price of the handset itself being dropped. I guess I'll be sticking with my Toshiba for a while longer then.

Tempted into Apple's clutches by the improved contract, or is it too little too late? Let us know your thoughts over in the forums.

14 Comments

Discuss in the forums Reply
DXR_13KE 30th January 2008, 12:57 Quote
still to damn expensive and exclusive.....
BioSniper 30th January 2008, 13:28 Quote
I agree.
That and data is STILL too expensive, they should do it like Three on my Pay-as-you-go, £5 a month for "unlimited" net usage, though I don't know exactly what that amounts to, its still quite enough for most people to check email and search on the internet for stuff.
AlexB 30th January 2008, 16:47 Quote
Exactly what everyone else is saying - still too much at £269 to buy, plus an 18 month contract.. mad!
pumpman 30th January 2008, 17:09 Quote
excellent, my daughters one is a contract iphone more minutes for free :)
Arkanrais 30th January 2008, 17:49 Quote
Im not interested in them at all.
...but the question is: will it blend?
lewchenko 30th January 2008, 20:05 Quote
Old pricing is still on the O2 website... but this phone is way too expensive. £269 for the phone (+ a minimum of £35 a month for the tarif for 18 months and insurance at £7 a month)... Over the course of 18months thats a whopping £1025.. plus the cost of extra calls and data that you will no doubt incur.

Yikes!

Mind you, I personally think you have to be stark raving mad to consider joining the O2 network in the first place. In my opinion, the networks rank as follows in the UK :

Worst netowrk list ! :

1. O2 (Ouch at every point - shocking value, customer service [based on experience] is horrific. Really poor value Tarriffs)
2. Vodafone (Moderately Ouch but good phone selection and best coverage. Tarriffs have improved recently.)
3. Orange (Reasonable but shoddy customer service and not the best phones. Tarriffs reasonable.Average Coverage)
4. TMobile (Best Tarrifs by far for flexibility but poor phone selection and coverage. Average Customer Service)
5. 3(Three) Network. (Cheapest Tarrifs, but unreliable in most areas)

Personally I went with Vodafone, but would consider Orange/TMobile as well next time. The only one I havent been with is 3(Three) but everyone I know who has will never again LOL !

I really would like an iPhone, but NEVER on O2, and not for that price !
DXR_13KE 30th January 2008, 20:50 Quote
Quote:
Originally Posted by Arkanrais
Im not interested in them at all.
...but the question is: will it blend?

i feel thousands of apple fans shivering and crying......
naokaji 30th January 2008, 21:24 Quote
Quote:
Originally Posted by Arkanrais
will it blend?

they discovered a way to make the battery user changable:D
fev 31st January 2008, 12:39 Quote
why not do it the normal way...buy iphone...unlock..put in current network sim card...jobbeth dunneth?

No 18 month commitment, but you still have your iPhone
Harrybo 31st January 2008, 13:53 Quote
Quote:
Originally Posted by pumpman
excellent, my daughters one is a contract iphone more minutes for free :)

I think you will find that they are not '"free" your still paying £35+ a month for a tiny amount of minuets and texts :P
RTT 31st January 2008, 14:58 Quote
Quote:
Originally Posted by Harrybo
I think you will find that they are not '"free" your still paying £35+ a month for a tiny amount of minuets and texts :P

exactly what i thought, too.
Tim S 31st January 2008, 17:51 Quote
'specially when you're paying for the phone too... normally a contract subsidises the cost of the phone... but that's not really the case with the iPhone, since you're already paying £270 for it in the UK.
fev 31st January 2008, 19:57 Quote
phone subsidising is on the way out, we're going the way of most of the Eurozone with paying for contracts and then phones.

First step was to introduce "sim-only" tariffs - Check!
Second offer unlocked handsets for 45% over cost - implemented at CPW and P4U already

Paying for your phone is just around the corner,
pumpman 31st January 2008, 22:38 Quote
I paid over 300 notes for a new 6800 ultra its now pretty much worthless, I paid £180 for a opti 146 its now next to worthless, same with the x2 3800's I have I paid £220 for an 8800gts its now worth about a hundred, I could easily pee £50 up a wall on a Saturday night but I don't drink, Ive curbed my pc spending so Im actually saving money :)so I bought the phone for my daughters chrimbo, and a special one for my son, on the contract one it was 200 mins and 200 texts, if they are giving me 500 and 500 then thats 300 extra free in my book as I was happy paying the £35 pm for the 200/200 in the first place
go on get one you know you really want too :)
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