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O2 announces high charges for UK iPhone users

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Apple has announced their new iPhone “3G S” mobile, which is the next step in the evolution of the hugely popular phone brand. The iphone 3g s has a host of new features and although it wasn’t the groundbreaking update that many people had been hoping for, it’s set to be another commercial success for the company.


However, anyone planning to buy the new iphone or use their existing 3G model in the UK should be aware that O2 has decided on some very uncompetitive pricing schemes for both the new phone and old model alike. The prices for using the phone online are actually more than those charged for O2’s own mobile broadband dongles, despite the same data allowances.

The iPhone contract currently comes with unlimited data subscription. But despite the built-in ability to connect the phone to the computer and use it in exactly the same way you would use a broadband dongle, O2s pricing means that this will cost you an extra £15 – £5 more expensive than if you use the company’s own mobile broadband service.

The company are also not allowing users on an existing iPhone contract to upgrade until the contract has ended. The last iPhone update in 2008 saw the company offering customers immediate upgrades regardless of their date of contract. Furthermore, despite Apple dropping the price of the older model O2 is not dropping its own prices, with the cheapest 3G available still costing nearly £100 on an 18 month, £30 contract: £640 in total.

You can buy the iphone from O2 outright for £342. It’s new price in the US? $99, which is around £70. Although technology is almost always cheaper in America, that’s a huge price gap that easily justifies buying the phone from the US and paying for import and delivery.
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The prices have been met with frustration and annoyance from UK consumers. Gordon Kelly from consumer review site TrustedReviews commented that the deal was: “ludicrous, barmy, batty, recession-timed-madness”. We couldn’t agree more.

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