Orange Rules Out Price War Over iPhone

Leading telecom service provider Orange has dashed hopes of lower traffics for iPhone users on its network and is planning to promote its service based on its network strength.

Apple’s much vaunted smartphone will be available on the Orange network from next Tuesday and this marks the end of the two year exclusive deal which telecom major O2 had with Apple for marketing the iPhone in UK.

The decision from Orange to keep the tariff plans at the same level as those of O2 is seen by many as a wise business decision as any move to cut tariffs would have affected the profitability of both the carriers.

Though the decision by Orange is likely to disappoint many customers who were hoping for lower priced plans, some analysts believe that in a long run, competition based on quality of service is a better approach than one based on price arbitrage and the decision by Orange seems to follow the same logic.

The standard iPhone 3G handset will be available on the Orange network at just £30 a month on two year contract while its advanced counterpart the iPhone 3GS will be available on £45 plans on a similar two year contract.