Mobile operator O2 has launched a new ‘SIM-only’ tariff for iPhone users, in an effort to hold onto its existing iPhone customer base and stop them from moving to a rival network.
O2 is facing stiff competition from rival operators over the iPhone after it lost its two-year ‘exclusivity deal’ for the iconic Apple device back in November last year. Orange became the second mobile operator in the UK to stock the Apple handset, quickly followed by Tesco.
Vodafone also began selling the device in January and, despite arriving late to the iPhone party, it managed to shift 100,000 Apple handsets in its first week of sales. To make matters worse, Vodafone announced last month a SIM-only tariff for out-of-contract iPhone users on other networks.
Vodafone has been heavily promoting the quality of its mobile network, after O2 suffered a number of embarrassing network failures in London last year, which led to a public apology from the operator.
But with the move to offer a new range of budget-minded SIM-only tariffs, O2 is seeking to retain its iPhone customer base.
“Customers who already have an iPhone or are just happy with their existing Smartphone can choose from a range of sim only tariffs starting at just £15 per month for 300 minutes, unlimited UK texts, data & Wi-Fi on a 12-month sim only contract, or from £20 per month on a 30-day rolling contract,” said the operator.
“Those customers who don’t ever want to worry about how many minutes or texts or how much data they have used, O2 introduces a set of tariffs offering unlimited UK calls, texts and data from just £45 a month.
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I have an iPhone sim only tariff now and am saving loads of money each month with the same amount of minutes and text that I was getting on the old contract from O2 that I had. What with the new iPhone 4 coming out now, i think that it's a good idea to make it available SIM free so that people actually have a choice on what network they use. It also gives the opportunity to change and also to sell the phone further down the line if need be.
Found an interesting comparison between the price of a standard iPhone contract where you are tied in for 18 or 24 months and get an iPhone included in the price (or a bit cheaper) against buying an iPhone outright and getting a sim only iPhone tariff.
You can see the iPhone sim only comparison tableby clicking the link.
Sorry wrong link. Its actually here
I think this is a good move by O2. I was working for them when the iPhone was initially released, and competition has been good as it's brought prices down. This is also a good idea as hopefully it will bring prices on iPhone sim only contracts down further. Also it's a pretty smart move by O2 as otherwise they would obviosuly be risking losing customers.
Sim only contracts are likely to keep growing and growing with the rise in popualrity of the iPhone and other smartphones, the cost of these phones means people will be more inclimed to keep them and go for a sim only deals. I'm a writer for http://www.sim-only.com and I know first hand that these deals are on the up.
this is perhaps the 3rd article I have read about o2 in so few weeks. Glad to see their stepping up to the mark in the Contract Sim market. I had my original iPhone for like 4 years and love o2, so this is ideal.