O2 offers U.K. iPhone users upgrade path to 3G

iPhone users in the U.K. will have an option to upgrade to the new iPhone 3G without paying full price for a new model.

O2, the exclusive carrier of the iPhone in the U.K., will offer a free iPhone 3G to customers who opt for one of its high-end rate plans, and a reduced-price iPhone for those who take the midrange plans. Interested customers will have three months following the July 11 introduction of the new iPhone to sign up for the program, which will require a new 18-month contract.

Specifically, the 8GB iPhone 3G will be available for free if O2 customers pick a 45-pound ($87.90) or 75-pound rate plan. Customers can get a free 16GB model if they choose the 75-pound plan. Depending on which one of O2's other plans customers pick, they can get a 8GB model for 99 pounds or the 16GB model for 159 pounds.

It doesn't seem like AT&T is going to offer a similar upgrade path in the U.S. Monday's press conference revealed that AT&T is hiking the cost of its iPhone data plans, but made no allowances for an upgrade path to the new model--other than buying a new one at full price, of course.

That's probably because there are far more iPhone users in the U.S. than in the U.K., and the cost of upgrading the U.K. installed base would be far cheaper than pulling off the same stunt in the U.S.

It will be interesting to see how iPhone 3G upgrades work in the other countries where the first-generation device is available, such as Germany, France, and Ireland. Orange, which will carry the iPhone 3G in Austria, Portugal, Switzerland, and France in July, made no mention of an upgrade path in its press release Monday.

[bobmarleypeople]

Has no one else noticed that on the O2 website they have a section allowing people to register interest for a PAY AS YOU GO iPhone plan? You Americans may call it "pre pay" or "pay as you talk" or something, but the fact of the matter is, O2 are offering NON-CONTRACT iPhones (and that's the biggie). Obviously people will have to pay a premium on top of the standard price for the phone, but at least the option will be there! I'm looking forward to this now!

[iertry]

I noticed pay as you go as well but I can't see how it will work. Think about it, one of the main points to an iPhone is the internet and with pay as you go that will cost a fortune. The new £30 price plan is also silly as you only get 150 texts and 70minutes but for an extra £5 a month you can get more than 2 or 3 times as many. (sorry can;t remember the exact figures.) The price drop has encouraged me to get an iPhone though.

[marksiphone]

If it still lacks the absolute basic features like being able to forward a bloody txt (sms) and Bluetooth, then I cant wait for my contract to finish to get a proper phone! don?t be fooled by the gadgets! You get fed up with them after a week! Except the ipod! This phone makes you more of an outcaste than anything else? look a people faces when you show them.. Then look at it again when they wana send you a photo or video? emmmm cant!

[businessesforsale]

In summary, existing iPhone users in the UK are being offered exactly the same monthly packages as new iPhone customers. The way O2 words this on their website makes it seem a better deal for existing iPhone users.

The salient point is that existing iPhone customers get a chance to prematurely end their existing contract, so long as they start a new 18 month period with the 3G version.

[macKilroy]

The upgrade path that I am interested in is a 16Gb iPhone for a one-off £59 (which I pay) and £10 more per month on the plan (which my company pays) and my wife enjoys my old handset with a pay-as-you-go simm card (according to the O2 website). The new higher tariff (at £45) still works out cheaper than my previous tariff with Orange which was £38 per month but hovered around £60 due to my data usage. Also with orange, it was bundled with 200 minutes inclusive, whereas this includes 1200 minutes talk-time per month. Overall, I am pleased to have these various options to choose from as an existing customer.