O2 has just announced a new service available for its subscribers, a first on the UK market: Lease O2.
New or existing O2 customers can now lease any smartphone available in the carrier's offering without having to pay for it upfront, which might appeal to those who want a new top-of-the-range handset every year.
There is however a monthly fee of £55, though insurance is included as well as other benefits in the one year contract, such as 750 minutes, unlimited texts and 500 MB of data.
The service is also available for small businesses, with the tariffs being adjusted according to the business plan agreed. Sally Cowdry, marketing and consumer director for O2 UK, proudly explained that this is the first time a carrier is offering a leasing solution for smartphones, adopting the same model that has become popular with consumers and businesses for other products like cars, washing machines and offices.
"Innovation is not just about product, it is also about service, providing new ways for people to buy. We want to ensure that customers can pick and use the right option for them," she explained.
At the end of the contract, customers can return the phone and take another one with a new lease, or change their contract. There is also the option of moving to another carrier after the contract is terminated.