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O2 announces UK iPhone 3G pricing

by Parm Mann on 10 June 2008, 09:53

Tags: iPhone 3G, Apple (NASDAQ:AAPL)

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Following last night's unveiling of the 3G iPhone, UK mobile operator, O2, has unveiled price plans for its customers in anticipation of the July 11th launch.

On its website, O2 states "There's only one thing better than an iPhone. The new 3G iPhone." It adds that customers can now receive the iPhone 3G handset free of charge when purchased on selected monthly tariffs.

As with the original iPhone, all tariffs include unlimited browsing, unlimited Wi-Fi access, visual voicemail and reduced roaming rates. All sounds rather good, doesn't it?

Well, let's take a closer look at the monthly tariffs themselves:

Monthly Charge £30 £35 £45 £75
Cost of 8GB iPhone £99 £99 Free Free
Cost of 16GB iPhone £159 £159 £59 Free
Minutes 75 600 1200 3000
Texts 125 500 500 500
Unlimited Data & Wi-Fi Yes Yes Yes Yes
Visual Voicemail Yes Yes Yes Yes
Reduced Roaming Rates Yes Yes Yes Yes
Minimum contract length 18 months 18 months 18 months 18 months

You'll notice that the minimum monthly tariff has dropped thanks to the introduction of a new £30 option. It offers little in terms of minutes and texts, but could prove to be an option for users who need only web access.

In order to take advantage of O2's free 16GiB iPhone 3G offer, you'll have to cough up for a £75 monthly contract. With a minimum contract of 18 months, you'll be paying a total of £1,350. That's cheaper than the £1,619 total 18-month cost of the old iPhone, but it's still no small sum.

Existing iPhone owners will no doubt be feeling the sting of O2's low price plans for the new-and-improved handset, but there are options for existing customers to upgrade. In order to do so, however, you'll need to agree to a new 18-month minimum term contract. Opting for the £30 or £35 tariff will make the iPhone 3G available as a £99 upgrade, and opting for the £45 or £75 contract will make the handset available for free. O2's upgrade offer will be available from 11th July until 11th October 2008.

Perhaps the most significant development, however, is that O2 has revealed that Pay & Go options will soon be available to iPhone customers. O2's official iPhone website states: "Customers will soon be able to enjoy all the great features of iPhone without a monthly contract with the iPhone for Pay & Go."

Pay & Go pricing has yet to be announced, and though users can no doubt expect to be paying large sums for the iPhone 3G handset itself, it could prove to be a successful option.

Ronan Dunne, CEO of O2 in the UK, said:

"The iPhone is already a phenomenal success in the UK and now we're making this revolutionary product more affordable for even more customers. iPhone quickly became our fastest selling device ever and with this new pricing, iPhone 3G is an unbeatable proposition."

Pricing has been a determining factor in UK iPhone sales thus far. Will the new iPhone 3G coupled with lower prices convince you to make a purchase? Share your thoughts in the HEXUS forums.

Source: Official O2 iPhone website



HEXUS Forums :: 19 Comments

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In a month's time I'm upgrading from my £35 a month Three contract to a £15 a month 30-day T-mobile contract.

And I'm keeping my phone.

£75 a month? That's ridiculous.
The O2 exclusivity is a still a deal-breaker for me, largely due to the 18-month Orange contract I'm currently tied into.
Well tbh those are surprisingly competitive. The £45 option gives you the 8Gb phone for free and unlimited data is more than most of the other operators give.

Afaik the only other operator to offer an unlimited data option is T-Mobile and their coverage is said to be abysmal.

I'm not interested in the iPhone myself but it's certainly a more attractive deal than the old one.
I'm getting an HTC TyTnII when my 3 contract ends in August and it looks like I'll be going to O2 for it because of the unlimited data.
Whilst the O2 factor still kills it, and the fact you pay 30 quid a month for a pitiful amount of minutes/texts, it's a very good sign that Apple are finally honouring their prices worldwide.

Most people expected it to mean £199 in the UK, as with most Apple products. If this was shown across the board then Apple would be very competitively priced compared to other hardware products.
I don't see why people dislike O2? I've found their coverage to be great, but their data dog slow.

T-Mobile and 3 will also do very good fair useage unlimited data.

I'm paying £25 a month for somewhere around 500/1000 min/text with unlimited data on T-Mobile atm.

The thing is they really got the price waaaay below what i was expecting, i remeber been shocked that people who in my mind can't really afford to spend £1.5k on a phone where buying them last year, at least this time the price point is remotely competitive.

What i think will stop this been a truely great phone (appart from the crippled, yet insecure OS) is the lack of GPS, and Video connectivity. Others offer the ability to use the phone for watching video on the go (streamed), and then hooking up pre-recorded content to a tv.

Still the price point isn't bad, i might actually consider one this time!