O2 has piled pressure on Orange, which has just started selling the iPhone, by cutting the price of the tethering option and giving free landline ADSL broadband to its existing iPhone customers with tethering bolt on in a deal called Total Connectivity
While the tethering option from Orange costs £15 for 3GB, O2 has brought down its price to only £9.79 per month, which is slightly more palatable than the £14.68 that it charged previously. PAYG users won't be able to benefit from the deal since they are not allowed to tether.
O2 has also announced that it will be throwing in its award winning free ADSL broadband package worth £7.35 per month (over and above BT's line rental costs) and will also give an equivalent discount to those looking to buy more expensive packages. The deal is only valid for those who buy the tethering bolt-on option.
Peter Rampling, O2's Head of Consumer Mobile, said "This is a brilliant deal for people who want tethering and home internet. Effectively you get both for just £9.79 a month. Total Connectivity means our customers will always be connected, at home and on the move."
Orange has been giving free landline broadband with its pay monthly packages for some times already but unlike O2, the France Telecom owned mobile network has apparently struggled to deliver great broadband experience for its customers.
In effect, someone taking both tethering and basic broadband with O2 will be paying around £15 less than it would normally have paid a few months ago. That's half the price of the cheapest iPhone package at O2 and is a great bargain to be had.