O2 slashes contract deals for handset-happy

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O2 customers can get reduced bills and do their bit for the environment by sticking with their existing handset

O2 mobile phone customers can now get significantly cheaper monthly contract bills if they stick with their existing handset and sign up to a new 'simplicity' deal.

O2 is introducing a new set of SIM card-only 'simplicity' tariffs that promise customers O2's best ever calling rates - and contracts that can be ended with just 30 days' notice. The simplicity deals go against a growing trend of longer-term contracts that has seen some UK operators such as Orange introduce 2-year deals .

O2's simplicity deals start at £15 a month. They give customers 200 minutes inclusive airtime and 200 texts (or double the texts if they buy online ). A range of 7 simplicity deals are now available, costing up to £60 a month. These work out at £10 - £15 less per month than equivalent O2 18-month contract packages. Simplicity customers can switch tariffs too if they need more airtime or texts.

As well as offering cheaper bills and a shorter contract tie-in, O2 is linking the simplicity deal to helping the environment. On top of saving carbon emissions by not upgrading to a new phone, for every simplicity deal taken out with a paperless bill O2 will donate £5 to the O2 Energy Saver Fund .