TechRadar has spoken to O2 about the recent furore over the decision not to let consumers break current iPhone deals to move to the new iPhone 3GS, with the network pointing out users shouldn't get special treatment just for having an iPhone.
Speaking to Steve Alder, General Manager of Devices for O2 UK, he pointed out that it simply wasn't viable to let O2's iPhone customers upgrade early:
"Having subsidised much (or all - depending on tariff) of the price of a customer's iPhone 3G, we simply cannot justify invalidating that contract and subsidise a second device for the same customer.
"Much as we understand the desire of many customers to have the latest version, this would be a loss making deal for O2 and would be a distinct set of business terms for iPhone customers that don't apply to our other customers."
iPhone users are no different
"Contract and upgrade terms for iPhone are exactly the same as contract and upgrade terms for any other O2 device."
Alder also pointed to an early upgrade deal O2 also currently supports for all customers, although it's unlikely to satisfy most grumpy iPhone customers given that they won't be anywhere near six months left on their iPhone 3G contract, and even fewer still be spending the amount necessary (rumoured to be £75 plus per month) to qualify for the six month early upgrade break.
"All iPhone customers who spend more than £35 per month are eligible for earlier upgrade under our Priority List programme, the only early upgrade programme of its kind in our industry. Early upgrade is for 1-6 months depending on spend levels.We urge customers to call customer service to discuss their options."
The other main issue consumers are up in arms about is the sheer cost of tethering, which will now be available for iPhone users at a cost of £14.68 (for 3GB) or £29.36 (10GB) per month just to use data.
Tethering
Alder pointed out that this was no different to O2's other tethering plans, so while they might be expensive iPhone users aren't being stung any differently to the rest of O2's customer base:
"The mobile broadband tariff for "tethering your iPhone to a computer" (effectively using it as a mobile broadband dongle for your computer) is the same price and value as our other mobile data tariffs," he added.
That response isn't likely to satisfy users who realise they can get far more data from the likes of 3 for the same price per month, but O2 is clearly hoping that it stops people thinking the network is using iPhone loyalty to scam more money from users.
Alder finished by stating that he hoped that iPhone 3.0 software was seen as the standout announcement from Apple, as it's something that can be enjoyed by both iPhone 3G and 3GS users:
"Unlike nearly every other device in the market, iPhone evolves and grows via software and service updates (plus iPhone apps). The vast majority of the new functions and benefits that Apple announced are related to the updated 3.0 software. We recommend all iPhone customers download this for free from June 17 and enjoy the new features."
While O2 has clearly been backed into something of PR corner by letting customers upgrade for free from 2G to 3G, the sheer level of criticism highlights how careful any network needs to be when dealing with Apple products.
Your comments (19) Click to add a new comment
rhk001
June 21st
19. I am still on the 2g phone and wanted to upgrade to 3gs, I am happy to pay for the upgrade, but 02 are not interested in breaking my contract and signing me up for another 18 months, they will give me a month off !!! Stuff them I will not re-sign anither 18 months now and will buy my own phone and terminate with 02 as soon as someone else breaks their monopoly, or someone else brings out a decent phone. O2 are very narrow minded and seem to have upset a large majority of their customers.
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robl
June 12th
18. These are exactly the same restriction I have with my XDA so why should Apple users get treated any differently? I pay the same amount as they do for the same Internet access. If I want to use it as a broadband modem I have to pay the extra. I do have a separate mobile broadband with O2, mainly because its coverage and speed is better than 3 and T-Mobile (yes I've tried them both) as I work away from home 4 nights a week and like to have my phone free at all times. I'm on line as much as 14 hours a day. What annoys me is that O2 have no all-in-one contract. I have my mobile, broadband and mobile broadband all with them, but I only get a reduction on my broadband. I've also been with them as a supplier since my first mobile phone, but they don't seem to have much loyalty to their long-term customers.
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midger
June 12th
17. Is there anything to stop me buying a new iphone from the Apple store and using my existing O2 sim & contract?
m
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barryjon
June 10th
16. I can swallow the handset subsidy issue; that's fair enough. The tethering issue though is a con and though there may be some smoke and mirrors involved, they are effectively double charging in this respect. You are already paying ~£7.50 (implicitly as part of the contract) for the mobile browsing so why not just charge the difference to change that to a mobile data package so that it all comes out of the same 3/10GB. Or allow people who go for the tethering to choose another free bolt-on in place of the unlimited browsing (now covered by the data bolt on), so they could go for unlimited o2 to o2 calls or something.
As it stands, they are clearly milking the iPhone exclusive for all they can and people would be well advised to hold off on buying/upgrading for the time being. O2 are actually one of the worst for mobile data (quality of service) and make it very difficult to turn off their image compression.
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jmace86
June 10th
15. http://www.ilounge.com/index.php/articles/comments/the-iphone-upgrade-plan-a-fair-solution-to-a-growing-apple-problem/
This article makes some very sensible suggestions for how an iPhone upgrade path could (and should) be implemented by Cellular networks.
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healeydave
June 10th
14. I'm not convinced about the o2 mathematics anyway, considering you have to buy the iPhone as well as the pay monthly fee's on at least an 18 month contract, I suspect the phone has more than been subsidized for those that got early 3G's.
I also love the way o2 kept agreeing they were expensive for stuff like tethering etc but insisting iPhone users were not any different to other handset users they were overcharging, like that was a good thing!?!?!?!
P.S.
After putting the GM Seed of 3.0 on a couple of days ago, I thought I would still have to wait for MMS to be enabled by o2 etc but it started working today after I rebooted the phone (if only I'd thought of that sooner) so at least I'm happy about that :-)
P.P.S
If you are a Dev and have the GM seed installed, text MMS to 1010 to get the enabled message back and your good to go. If it doesn't, try a reboot like I did!
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