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Google Nexus 4 currently available via O2 - but for a £120 premium

The hotly in-demand LG-built Google Nexus 4 is currently available on O2, albeit at a price of £399 for customers who choose the Pay & Go package. That is £120 more than what Google is asking for it via its Play Store, where the corresponding 16GB model costs just £279.

Google Nexus 4 pricing with O2 varies on Pay Monthly options, ranging from free to £299 depending on the tariff chosen.

O2 managed to secure an exclusive retail deal for the first month of Nexus 4 sales and provides the only alternative for customers to purchase the handset, which sold out within 30 minutes of going live on the Play store and Google's press office unable to confirm to us when stocks might be replenished.

"We are selling Nexus 4 on a range of tariffs on both Pay & Go and Pay Monthly. On O2 Pay Monthly, for instance, the phone is free on a £36 or above tariff. O2 Pay & Go customers meanwhile can use their O2 Reward balance to get discounts off new phones and accessories, including Nexus 4," the network told International Business Times.

Perhaps in an effort to mitigate its apparently inflated Nexus 4 price, O2 added: "Prices are set by both O2 and Google."

O2 explained that the increased expense was due to services associated reward schemes like Priority Moments, which gives O2 customers access to daily deals.

“Customers buying from us will benefit from things like O2 Priority Moments, Ticketing, O2 Rewards and Fair Deal and others for being part of our network," said the service provider.

The Nexus 4 handset as briefly available via Google also comes unlocked and can thus be used on a range of networks, making it possible to purchase the device from the Play Store and obtain an O2 SIM-card separately - saving £120 on the hardware and obtaining all of the O2 benefits at the same time.