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Official : O2 Cuts Free iPhone Monthly Contracts, New Models Coming

O2 has officially announced that it will be giving the 8GB iPhone for free on a £34.26 monthly contract with the 16GB model costing £44.05, the previous entry price for a free 8GB iPhone.

Last week, Mobile Today reported that O2 would be cutting Apple's iPhone contract prices. Customers will get 600 free minutes and 500 free texts (as well as unlimited browsing) on the first one saving punters a £96.89 charge. Those going for the £44.05 contract will be getting 1200 mins and 500 texts plus a £57.74 saving.

In both cases, the contracts last 2 years although you should be able to upgrade to the latest iPhone assuming everything remains constant (i.e. O2 is still the exclusive iPhone network).

O2's marketing director, Peter Rampling, said that "This new 24 month tariff option will meet the demand of customers who are looking for added value in exchange for committing to a longer contract".

The new prices will be introduced on the 3rd of April on O2 and at Carphone Warehouse and it is likely that O2 will introduce the next generation iPhone within 100 days. O2 hasn't announced any price reduction for the iPhone 3G on Pay As You Go.

AT&T has already confirmed that it will be selling contract-free iPhones (ed: That's Pay as you go for us) next week which means that network providers could be looking to clear their stock before the third version of the iPhone is launched.

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Our Comments

The announcement corresponds to what was expected. With a new iPhone coming, it does make sense to cut down the price of the contract. Is it worth it and most importantly, do you have to wait? It is unlikely that O2 will revert back to the original price in a few months time. This means that a lower priced iPhone could be in the books.

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Désiré Athow
Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.