O2 Announces iPhone Upgrade Plans, New Data Caps

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iPhone owners on O2’s network in the U.K. is offering discounts for subscribers that want to buy their way out of their current contract to get an iPhone 4. Along with those discounts, the company also announced that it is ending its unlimited data plans in favor of tiered caps, much like AT&T is doing in the United States.

O2 will charge subscribers £20 for each month left on their current iPhone contract when they upgrade to an iPhone 4, and they’ll waive the usual 14-day window where they can back out of the deal.

The new contracts O2 will offer customers do away with unlimited data plans in favor of capped plans ranging from 500MB a month up to 1GB a month. According to O2, “Based on current usage patterns, 97 percent of O2 smartphone customers would not need to buy additional data allowances, as the lowest bundle (500MB) provides at least 2.5 times the average O2 customer’s current use.”

O2’s new smartphone tariffs

O2’s lowest price plan includes 500MB of data a month, 100 talk minutes and unlimited Wi-Fi access at O2 hotspots. At the high end, the £60 plan includes 1GB of data, unlimited talk minutes and unlimited Wi-Fi hotspot access.

The new base-level O2 plans offer twice the data compared to AT&T’s entry-level plan that offers only 200MB of data a month. At the high end, however, AT&T’s 2GB monthly cap beats O2’s 1GB cap.

Apple’s iPhone 4 will be available in several countries on June 24, including the U.S. and U.K. Pre-order sales begin on June 15.



And so ends the era of unlimited data with your smartphone, surely the main reason to own such a device!?!

In fact O2 are going to take my unlimited data plan off me (iPhone 3GS) claiming that: ?Unlimited data on all smartphone tariffs is a promotion until 1 October 2010. Excessive usage policy and terms apply, see o2.co.uk.? - WTF!

If I upgrade to iPhone 4 on a similar tariff to my current plan with O2 I?ll pay ?5.00pm more, I?ll be charged 20 pence per MMS message (currently they deduct 5 SMS credits from my account), I?ll only get 500MB of data, but I?ll get unlimited SMS (I never go over my 500pm limit anyway).

Lets hope that Orange and Vodafone keep their unlimited data plans or offer greater amounts than O2!

What a disappointment :(


“the lowest bundle (500MB) provides at least 2.5 times the average O2 customer?s current use.”

if that’s true then the only reasons to stop offering unlimited plans is that your network can barely cope with that level of usage or your hoping to charge more for what you fo provide. Otherwise, what does it matter if you offer unlimited plans?

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