O2 Won't Cut iPhone Costs As It Could Face User Rebellion

By next year, you should be able to buy the iPhone on three networks, O2, Vodafone and Orange, although all existing iPhone customers will possibly be tied up to O2 because of their contract terms and conditions.

The Telegraph understands that up to 30,000 customers that have purchased the iPhone 3G in the last 14 days are legally entitled to end their contracts with O2, on the condition that they return the phone in its original box with the receipt.

But whether the process of cancelling your existing iPhone contract will prove to be fruitful remains to be seen as customers will need to transfer their phone numbers to a PAYG one and then transfer it again to either Vodafone, Orange or any other iPhone partners that comes in.

Analysts expect the iPhone contracts to fall by at least £5 over a two year contract which should save around £120 over the period and anyone wondering who holds the steering wheel only needs to consider that Apple apparently expressly forbade Vodafone from launching the iPhone on its network before next year.

As for O2, well, it has told Stuff.tv that it will NOT be cutting the prices of the iPhone and is basically business as usual. A spokesperson told the website that they knew all the way that it was coming; after all, why should they start cutting prices?

This would only demonstrate that they are quite desperate; furthermore, both Vodafone and Orange have yet to unveil details of their mobile phone contracts although you can expect both to offer competitive tariffs.

Our Comments

But it is actually O2 which is more likely to suffer as it now loses the appeal and the goodwill that the iPhone brought with it. It would be interesting to find out whether other smartphone manufacturers will be dropping their price in order to get new business form the mobile phone networks.

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