O2 UK sets pay-as-you-go iPhone 3G prices, launch info

[AppleInsider]

O2 has removed one of the barriers to wider iPhone 3G adoption in Britain with news on Monday of when and how it will offer its Pay & Go prepaid service for Apple's cellphone.

The official pricing for the unsubsidized phones is now much higher than for the devices on contract and will require £350 ($631) for an 8GB iPhone 3G and £400 ($721) for the 16GB version.

The service itself expectedly drops the regular monthly subscription fees but offers a certain amount of benefits depending on the money put into the account each month. Paying between £10 and £14 ($18 to $25) each month nets a bonus 500 minutes of call time to any UK home phone or O2 cellphone; paying between £15 and £29 adds 1,000 minutes under the same terms, while £30 or more provides unlimited calls.

Unlimited Internet access within the UK, including 3G and O2 Wi-Fi, is free for the first year of service but will cost £10 per month afterwards. Text messages aren't included with the plan, however, and cost 10p each inside the UK. Calls past the prepaid amount cost 5p per minute.

O2 also cautions possible customers that the iPhone's signature Visual Voicemail and on-the-fly call merging also aren't available through the Pay & Go plan.

Prepaid phones will be available on September 16th from both O2 itself as well as Apple retail stores and Carphone Warehouse.

The move represents a significant scaling back from briefly revealed rates in June and steer customers towards O2's more profitable contract plans, which typically sell an 8GB iPhone for just £99 ($178) but make up for the subsidized price by requiring a minimum £30 per month for service over the next 18 months. More frequent users also receive the iPhone for free with some premium subscription plans.

Pay-as-you-go service is nonetheless widely seen as necessary for the UK, where prepaid devices are more popular for customers traveling to mainland Europe.

[ View this article at AppleInsider.com ]

[aegisdesign]

The tariff information in the AI article is not right.

The default tariff on a SIM on O2 Pay and Go is called 'Favourite Places' but you can pick from any of the others too...

http://www.o2.co.uk/mobilestariffs/t...o/paygotariffs

You can change tariffs once per month so you could go from the 500 free minutes from home tariff to the unlimited texts for £10 tariff or whatever suits.

Then there are also the Bolt Ons...

http://www.o2.co.uk/mobilestariffs/t...ygoboltons0153


It's complex but I reckon it might still work out cheaper for some people to use Pay & Go than pay for a contract.

[merdhead]

Text messages are such a rip off. I remember when they were free. Certainly the pricing means they are richly profitable for the phone companies. The 200ish bytes they involve must really tax their networks.

[mcarling]

At these prices, I hope the phones are unlocked. Does anyone know?

[gilles_deleuze]

Originally Posted by mcarling

At these prices, I hope the phones are unlocked. Does anyone know?

Yeah, wondering same thing.

[simonsharks]

What is the law in the UK when it comes to unlocking, do O2 have to unlock Pay As You Go phones when you ask them to? What about phones on a contract?

These prices seam reasonable on the surface, free unlimited browsing and Wi-Fi for the first year reduce the cost of the 8Gb to £230, which is less than the first generation at £270.

If your usage is low then it could be a good deal but if your usage increased will O2 let you transfer to a contact?

I'm not sure at the moment what to do about the iPhone 3G. I have an unlocked first gen and I would like a legit one but the price and the buggy 2.0 software is putting me off.

[mrochester]

Most networks allow you to get an unlock code for a pay as you go at anytime, so you *should* be able to buy the phone and get it unlocked the second you get home with it. Although I have a feeling that O2 will have tweaked the terms and conditions in relation to the iPhone.

[Mr Underhill]

Booooooo!!!!

[mrochester]

Originally Posted by Mr Underhill

Booooooo!!!!

Boooooo what?

[solipsism]

Originally Posted by mrochester

Most networks allow you to get an unlock code for a pay as you go at anytime, so you *should* be able to buy the phone and get it unlocked the second you get home with it. Although I have a feeling that O2 will have tweaked the terms and conditions in relation to the iPhone.

I'm guessing that iPhones will only be unlocked where laws require it. Apple are being real bastards here.

[sapporobaby]

Originally Posted by merdhead

Text messages are such a rip off. I remember when they were free. Certainly the pricing means they are richly profitable for the phone companies. The 200ish bytes they involve must really tax their networks.

Not even. They are sent out of band on the D-Channel (well for GSM networks anyway). Soooo, they are sent to an already waiting device. SMS are the operators cash cows.

[sapporobaby]

Originally Posted by mrochester

Most networks allow you to get an unlock code for a pay as you go at anytime, so you *should* be able to buy the phone and get it unlocked the second you get home with it. Although I have a feeling that O2 will have tweaked the terms and conditions in relation to the iPhone.

Nope, nope, nope.

Here in FInland you pay €519 for an iPhone that stays locked for 2 years. Sonera customers are so pissed off that the cable operator and the other operators are seeing people jump ship from Sonera for all other services while staying on the iPhone contract. Many are saying that once the 2 years are up, they will leave Sonera for ever. They screwed the pooch on this one for sure. While my iPhone was a "loner" because Sonera could not "give" it to me, I am still stuck on Sonera but if I was forced into this, I would leave as soon as the time limit was up as well.

[mrochester]

Originally Posted by sapporobaby

Nope, nope, nope.

Here in FInland you pay €519 for an iPhone that stays locked for 2 years. Sonera customers are so pissed off that the cable operator and the other operators are seeing people jump ship from Sonera for all other services while staying on the iPhone contract. Many are saying that once the 2 years are up, they will leave Sonera for ever. They screwed the pooch on this one for sure. While my iPhone was a "loner" because Sonera could not "give" it to me, I am still stuck on Sonera but if I was forced into this, I would leave as soon as the time limit was up as well.

Great reply if we were talking about Finland, but we're talking about the UK, so my statement still stands. There's no 'nope, nope, nope' about it!

[sapporobaby]

Originally Posted by mrochester

Great reply if we were talking about Finland, but we're talking about the UK, so my statement still stands. There's no 'nope, nope, nope' about it!

I was commenting on the

Most networks allow you to get an unlock code for a pay as you go at anytime

statement you made. I did not know it pertained only to the UK.

[winterspan]

Can someone across the pond enlighten me on 02's services... I went to their website and it appears that you can't get any decent smartphone under their pay-and-go plans. All the high-end Nokia, Blackberry, HTC, etc smartphones only appear on the monthly contract section. Is this really their policy in general --- that you can only use specific models on pay-and-go service --- or is that just limited to their website?

[applefrenzy]

I understand that in Greece an unsubsidized/unlocked iPhone is available for 499 Euro. Hopefully the UK one is the same, and hopefully Apple/ATT will get around to realizing this is worth doing in the US.

[heffeque]

Originally Posted by applefrenzy

I understand that in Greece an unsubsidized/unlocked iPhone is available for 499 Euro. Hopefully the UK one is the same, and hopefully Apple/ATT will get around to realizing this is worth doing in the US.

Where? This is the first news I hear about this. Any links? The last I heard was that the cheapest legaly unlocked iPhones were more like 1000 dollars or so.

[mrochester]

Originally Posted by winterspan

Can someone across the pond enlighten me on 02's services... I went to their website and it appears that you can't get any decent smartphone under their pay-and-go plans. All the high-end Nokia, Blackberry, HTC, etc smartphones only appear on the monthly contract section. Is this really their policy in general --- that you can only use specific models on pay-and-go service --- or is that just limited to their website?

No, O2 don't currently sell any high end Nokia, HTC or Blackberry phones on pay as you go. If you want one of those, you'd either have to buy one elsewhere, or get an O2 contract phone.

[aegisdesign]

Originally Posted by winterspan

Can someone across the pond enlighten me on 02's services... I went to their website and it appears that you can't get any decent smartphone under their pay-and-go plans. All the high-end Nokia, Blackberry, HTC, etc smartphones only appear on the monthly contract section. Is this really their policy in general --- that you can only use specific models on pay-and-go service --- or is that just limited to their website?

They'll only SELL you a non-smartphone on their website with Pay&Go although in store they'll bend that rule if you ask them. You can USE any phone on Pay&Go - just switch the SIM and provided the phone is unlocked or an O2 phone, it should work.

Other retailers, such as the Carphone Warehouse for example, will sell you a Nokia N95 on O2 Pay & Go - http://shop.carphonewarehouse.com/pa...lack/o2/pagcn/ - for £449.95 so the iPhone at £349 isn't bad at all, especially with it's free data for a year.

Blackberrrys don't really make sense on Pay&Go since you have to have the monthly Blackberry service and they aren't very popular in the UK, neither are HTC or the Motorola windows phones.

Typically, Pay&Go phones are bought by people with only occasional usage or usage where you might have bursts of activity and then none. It's not the type of contract for a smartphone user generally. For me however, where most of my calls are incoming (ie. free), I rarely text (incoming texts are free in the UK) but I need a decent PDA still and I'm usually at home where I work with my own wifi network, a Pay&Go Smartphone makes a lot of sense.

Also, In the UK, we have a pretty open market with retailers like Carphone Warehouse, Phones4U, TheLink, supermarkets and other independent stores able to sell all sorts of phones on all sorts of tariffs from all carriers. We don't generally have particular models tied to a carrier or store. The iPhone bucks that. Hopefully Apple will stop this silly US practice in the UK and allow some competition over the iPhone pricing.

[applefrenzy]

Originally Posted by heffeque

Where? This is the first news I hear about this. Any links? The last I heard was that the cheapest legaly unlocked iPhones were more like 1000 dollars or so.

http://www.vodafone.gr/portal/client...etsList.action

then click on the English link to see it in English. If you click on Select, it shows the 499 Euro as the price without connection. I called Vodafone when in Greece last week and at least that rep said it was unlocked, though maybe they didn't know the difference. If someone there now can double check it would be great.

Also this:

http://www.vodafone.gr/portal/client...ategoryId=406#

[heffeque]

Originally Posted by applefrenzy

http://www.vodafone.gr/portal/client...etsList.action

then click on the English link to see it in English. If you click on Select, it shows the 499 Euro as the price without connection. I called Vodafone when in Greece last week and at least that rep said it was unlocked, though maybe they didn't know the difference. If someone there now can double check it would be great.

Also this:

http://www.vodafone.gr/portal/client...ategoryId=406#

Unsubsidized yes, but I'm not sure that it's unlocked.

[nvidia2008]

I'd be very, very surprised if it was sold unlocked. Very, very unlikely, for O2 and Apple UK.

[nvidia2008]

Originally Posted by AppleInsider

...prepaid devices are more popular for customers traveling to mainland Europe....

But again, O2 and/or Apple UK will probably charge a £99 minimum over-the-air unlocking fee...

Want the iPhone 3G fully software unlocked? Support the competition to unlock NOW!!! Screw this locking bollocks.
http://www.unlock3g.org

[aegisdesign]

Originally Posted by nvidia2008

But again, O2 and/or Apple UK will probably charge a £99 minimum over-the-air unlocking fee...

For non-iPhones you have to have used it for 12 months on their network before O2 will unlock it. For the iPhone they don't offer unlocking. Both are bollocks.

[Shaun, UK]

Originally Posted by simonsharks

What is the law in the UK when it comes to unlocking, do O2 have to unlock Pay As You Go phones when you ask them to? What about phones on a contract?

These prices seam reasonable on the surface, free unlimited browsing and Wi-Fi for the first year reduce the cost of the 8Gb to £230, which is less than the first generation at £270.

If your usage is low then it could be a good deal but if your usage increased will O2 let you transfer to a contact?

I'm not sure at the moment what to do about the iPhone 3G. I have an unlocked first gen and I would like a legit one but the price and the buggy 2.0 software is putting me off.

I would bet that the iPhone will be locked to O2 but I think there ways to unlock it and use a different SIM card. The only problem could be when Apple issues iPhone software updates - will they work if you have moved off O2? I don't know.

I don't see any reason why O2 would not let you move onto a contract if you wanted. With Pay As You Go you only pay for one month's usage at a time so once you have paid and used your month then just buy a contract instead. It's not the best way of doing it though as you can save a lot of money off the purchase price of the iPhone if you buy it with a contract. If you're not sure I would buy a cheap PAYG phone to see how much you use it before shelling out £350-£400 on the iPhone or committing to an 18-24 month contract.

[aegisdesign]

Originally Posted by Shaun, UK

With Pay As You Go you only pay for one month's usage at a time so once you have paid and used your month then just buy a contract instead. It's not the best way of doing it though as you can save a lot of money off the purchase price of the iPhone if you buy it with a contract.

That isn't how PAYG works. You buy £10 of credit and it lasts indefinitely, not 1 month. Sometimes the carrier requires you to top-up at least every 6 months though.

If you don't use you phone for outgoing calls or text very often then stumping up the £350 for the iPhone may be a couple of hundred pounds cheaper than the contract version.

eg.

PAYG - £350 + 6months * £10 for the data after the 12 months free = £410. Add in say £10 a month for calls/text = £590.

Contract - £99 + 18 months * £30 (cheapest contract) = £639.

So in that instance the PAYG iPhone is £49 cheaper. Many people spend significantly less than £10 a month on calls/text. I've a business line that I only ever get incoming calls on - very rarely used for outgoing. I've probably spent £20 in total on it in two years and I've probably got £17 of it left.

edit: one difference of course is O2 aren't giving you Visual Voicemail or call merging on PAYG, which is a little stingy but not the end of the world.

[Shaun, UK]

Originally Posted by aegisdesign

That isn't how PAYG works. You buy £10 of credit and it lasts indefinitely, not 1 month. Sometimes the carrier requires you to top-up at least every 6 months though.

If you don't use you phone for outgoing calls or text very often then stumping up the £350 for the iPhone may be a couple of hundred pounds cheaper than the contract version.

eg.

PAYG - £350 + 6months * £10 for the data after the 12 months free = £410. Add in say £10 a month for calls/text = £590.

Contract - £99 + 18 months * £30 (cheapest contract) = £639.

So in that instance the PAYG iPhone is £49 cheaper. Many people spend significantly less than £10 a month on calls/text. I've a business line that I only ever get incoming calls on - very rarely used for outgoing. I've probably spent £20 in total on it in two years and I've probably got £17 of it left.

edit: one difference of course is O2 aren't giving you Visual Voicemail or call merging on PAYG, which is a little stingy but not the end of the world.

You have to use the free minutes/texts within 30 days but yes you can use up the £10 (or whatever) credit as and when over time.

I'm interested in the PAYG iPhone because like you I generally receive calls rather than make a lot of calls so once you've paid the upfront costs for the phone it's better than shelling out £30 a month on a contract when I only make a handful of calls. Also I like the idea of free internet access for a year included.

I'm really looking forward to the 16th.

[Mr Underhill]

Originally Posted by mrochester

Boooooo what?

Sorry. Boooooo!! as in i don't think these PAYG deals are that appealing.

[Jensonb]

I'm pretty satisfied. It's a shade more up-front than I was hoping, but I was expecting 6 Months of Free Data if any, not 12! ANd I was going to pay out for it no matter what, so to me that values the phone at £280 for 16GB. Not bad at all. I don't text or call enough to warrant a contract (And I don't want one either). Pay/Go suits me and the Data does too - the full internet is one of my primary reasons for getting the phone.

All in all, not too bad. The no VVM and Call Merging is odd, but I can't see ever using them anyway - I don't get voicemail and don't recall ever needing to conference call. So pretty good. I may have to wait till October though.

[researchmug]

I don't get it?

you can use the ipod to surf the internet (where it's available)

but with the iphone you have to pay o2 10 quid a month for the privilege after 12 months on pay as you go?

i just don't get it?

[Jensonb]

What? For the first 12 Months, no matter what, you get 12 months of free, unlimited data plus free use of O2's Wi-Fi HotSpots. After that, you pay £10 a month for the same privilege. It's not like they're gonna stop you using data on the network after 12 months unless you pay £10 a month, never mind stop you using (Any) Wi-Fi

[nvidia2008]

Locked or unlocked? Any news yet? 'Coz if it is unlocked I will get my brother to send me one from the UK pronto!

[Jensonb]

Originally Posted by nvidia2008

Locked or unlocked? Any news yet? 'Coz if it is unlocked I will get my brother to send me one from the UK pronto!

Locked. O2 don't sell unlocked phones

[aegisdesign]

Originally Posted by researchmug

I don't get it?

you can use the ipod to surf the internet (where it's available)

but with the iphone you have to pay o2 10 quid a month for the privilege after 12 months on pay as you go?

i just don't get it?

They mean via O2's network or via BT OpenZone and The Cloud Wifi hotspots, which aren't usually free. If you've a free open wifi network you can of course use that instead.