The iPhone killer isn't a rival handset - it's O2

14. Dimlocator, I agree to a point: the priority thing needs a serious spend to reduce the qualifying period. To get a 3-month reduction (Gold) you need to be paying over £50/month; if you're paying less than that the early upgrade is just one month.

Me, I think if you're an O2 iPhone customer you should hang on till next summer. 3GS is ultimately a point upgrade; next year's iPhone should be a bigger deal. Locking yourself into an 18 or 24 month contract when you can be 99% sure there's a much better model coming next summer probably isn't a good idea.

13. I work for O2's Platinum service and I feel that the article misses the fact that the priority list service allows all customers an early upgrade, depending on spend. All customers should call and check their upgrade date as they may qualify for an upgrade earlier than they think.

12. Seriously, what kind of business wouldn't want to lock their customers in by having them sign a new contract? I understand their subsidy argument, but all I'm asking is that they allow us to sign a contract extension. So, if I have 6 months left on my current contract, I can sign a new 18 month contract and be then locked in for two years. After all, the monthly tariffs are the same for both old and new phones, so what difference does it make?

11. I still think it is a bit stupid that a high demand device such as the iPhone, that is primarily going to be owned by people who will always want the latest model, and that has a 12 month product cycle, requires users to sign up to an 18- or 24-month contract in order to use it to its fullest.

I agree with the article, most iPhone 3G owners will probably stick with their 3G until their contract expires, and then ride it out until next summer when the NEXT iPHone is released. That's what I will be doing unless something changes.

10. I'm not bothered about the the fact I'm tied in to my 18 month contract, I knew that when I signed up for it, but the tethering price is ridiculous. I would have loved to use that functionality as occasionally I need to get online with my laptop when I'm away from my home network and this would have been a neat solution, especially as I only need to do this once or twice a month, but let's hope O2 see sense on that one!

9. This is bad - i work in this "business" - no -one can afford this. O2's maybe shooting themselves in the foot with this one - it will be interesting to see what the Pre does with it's offering

8. rjlawson - I don't think anyone expects an early free upgrade. Why don't they simply allow customers to literally upgrade early; adding the new contract period on top of the existing one (e.g. someone with 6 months left would then be in a 24 month contract)

I personally wouldn't want to upgrade every year, but I bought the iPhone 2G not long before the 3G was announced (I wasn't aware of a new model coming).

I've got over the frustration now, but was hoping that O2 were going to allow me to upgrade sooner rather than later. They would get a guaranteed couple more of years of revenue for very little effort.

7. Solution for existing iPhone 3G users who have an overdraft facility...

Pay the full amount £538 for the PAYG 32Gb 3GS, sell my current 3G on eBay, they are currently going for around £300-£350, carry on using my contract until Jan 2010, then switch to the 30 day contract tarriff of £20 per month with 600 mins and 1200 texts.

I would even be free in Jan 2010 to unlock it and use it on Orange instead, plus by then, the tethering would be cracked.

I work it out to cost approx £1100 over the 18 months if bought the 32Gb 3GS next week and paid off the remaining 6 months of the contract.

And £688, if I sell my 3G for conservative £300, continue for 6 months on £35 and then change to £20 month contract for another 12 months.

Plus I am free to sell the iPhone 3GS next year for probably £350-£400 and get the new model which is released.

6. People paid the full £269 (eventually reduced to £169 to clear stock) for the 2G iPhone, it was not subsidised, and agreed to an 18-month contract. If everyone who bought the 3G version had paid the PAYG price of ~£350, I could understand the complaints.

How is this any different from getting an N95 on an 18 month contract, then the N95 8Gb comes out 12 months later & expecting a free upgrade?

5. I am not overly fussed by the tethering price (though they do seem outrageously high), as I am most likely not going to be using that particular functionality.

However the inability to upgrade early to the new iPhone is a bit of a slap in the face, especially -- as mentioned in the article -- after that was an option with the last iPhone update.

We all know that Apple are a company that like to release an updated version of their products every year so we are likely to see a new iPhone model every year, which is very inconvenient if you are locked into an 18- or 24-month contract with no option to upgrade.

4. The price of tethering is pretty outrageously steep, but the backhaul capacity has been struggling under the strain of iPhone users in some parts of the country already. Tethering would have slowed it to a crawl if it was free. Dropping it to something like £5/mo sounds more reasonable though.

Oh and whining that you can't break your contract is a little ridiculous. Firstly the new iPhone is arguably not worth paying for an upgrade, but secondly if you signed the contract for 18 months then waiting 18 months before an upgrade should be expected.

3. I definately agree that this is a suicidal move from O2.

It's doubtful they'll budge either, but we can always hope.

Think I'll start saving up for an iPhone 3GS2 next June :(

2. Spot on. It's a massive own-goal not to allow existing users to upgrade early.

Could you send this article to O2? Someone's got to knock some sense into them.

1. Too right. O2 could have picked up a massive PR win just by offering the tethering for existing users for nothing - resentment is definitely being stored.