O2 drastically improves iPhone plans in UK

“O2 is rolling out a much improved contract deal for iPhone users, offering more text messages and a higher call allowance for users on existing tariffs,” Jonny Evans reports for Macworld UK.

“iPhone users on the cheapest (£35) tariff will now enjoy three times the call allowance (now 600 minutes) and be able to send 500 SMS messages (up 300) as part of the new deal,” Evans reports.

“The £45/month iPhone contract will now enjoy the same call/text allowance as formerly given customers paying £55 per month: 1,200 minutes and 500 texts per month,” Evans reports. “And iPhone users on the top £55/month contract will either receive a £10 discount from their bill, or the chance to join £75/month contract, which offers 3,000 minutes of calling and 500 texts under the monthly deal.”

More in the full article here.

[Thanks to MacDailyNews Reader “Pyeman” for the heads up.]

20 Comments

  1. O2 has at last realised it has the opportunity to make a big hole in its competitors subscriber bases…

    They will start to do serious damage in 2008. I have sold one iPhone this morning… and I don’t work for Apple or O2…

  2. This makes a huge difference. The UK tariffs really weren’t competitive in the British market. They weren’t even competitive against O2’s own rates on other phones (for example, you can get 1200 mins and 1000 texts for £35/month in one deal!). All in all, it was putting off a large number of people who otherwise wanted the iPhone.

    The initial AT&T;rate in the US was noticeably better value, too.

    O2 have obviously done enough research to come to the same conclusion. Shame they didn’t launch on the better deal when the publicity was at its height.

  3. iPhones weren´t selling so they had to offer a better deal.
    Seems like word on the street is correct that the iPhone is a slow seller.

    Phone companies will have to make twice as good offering to move iphones – because this is still tooooooooo high.

  4. When SMS is treated in the same vein as iChat conversations, it’s easy to use up the included txt messages. This increase in service for the plans may improve the value, but doesn’t really address the issue of Simple Messaging Service being used in the wrong way…

    Doesn’t affect me too much as I have no friends.

    It’s similar to the way e-mail is abused as a way of sending ridiculously large files.

    I digress, but it’s a good job broadband exists to cope with such unforseen developments.

  5. re: iPhones weren´t selling so they had to offer a better deal.
    Seems like word on the street is correct that the iPhone is a slow seller

    —-

    Did you watch the Steve Jobs Keynote??

    If you did you would have seen that Apple has sold 4 million iPhones!

    Bloody amazing considering Apple expects to sell 10 million by 31st December 2008 and that it’s their 1st product in this market.

    the iPhone is selling great.

  6. A good start. Would be better if the orignal deal dropped from 35 to 25 rather than offer more minutes.
    O2 are offering cheaper deals for sim only contracts with short notice periods (£15 for 200min + 400 texts) which of course you can use if you jailbreak the phone.( Unfortunately no data deal included)

    now we just need 3G this summer and its a deal

  7. As one smart poster noted on another blog, Apple Finance Board IRRC, the great majority of O2 iPhone subscribers do not even come close to using up their data quotas under the current plan. So the costs to O2 for upping the limits are minimal. O2 just made a very smart move. Let us hope that Apple’s other carriers in other nations take note and follow.

  8. SJ isn’t afraid to look again if target volumes aren’t being achieved. A product is only worth what someone is prepared to pay for it. Having set a 10m target they will have to adjust product or cost to meet sales ( or both ).

    It’s just a case of playing ‘chicken’ and seeing who blinks first.

  9. That’s great ‘n’ all as a money saving point, fantastic even.

    But I do still seem to get poor reception with my iPhone compared to my old and knackered Sony Ericsson, or other O2 subscribers in the same spot. 🙁

    Most of my data is using iPhone’s browsing either at home or at friends/family houses and their wi-fi — but sitting on the crapper at work does get through a few EDGE bytes. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

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