O2 Disappoints With New iPad 2 Friendly Mobile Contracts

Telefonica-owned O2 announced a major overhaul in the way it sells its monthly contracts and one of its main selling points is that it will allow users to use their devices as mobile hotspots.

A 24-month contract with a phone, 600 minutes, unlimited texts and 1GB data bolt on will cost you at least £36 per month (you get to choose between the Galaxy S, the Blackberry Torch 9800, the HTC Desire and the Bold 9780).

Sure, you get 50 UK MMS and unlimited Wi-Fi and it is cheaper than, say Vodafone which offers the same package with 2.5GB data for £45 per month (with the same handsets) or Orange which doesn't offer tethering on non-iPhone 4.

But O2 does have a long way to go before it can match the deal offered by Three. Not only is unlimited data allowance and tethering included by default, you also get 2000 anytime, any network minutes, 5000 3-to-3 minutes and 5000 texts plus unlimited Skype calls.

And because of its strategic partnership with Everything Everywhere, Three users can piggy back on Orange and T-Mobile networks and in addition, the phones are slightly more affordable on 3 UK as well with prices staring from £25 for the Nokia E5.