O2 Costs and iPhone 3Gs….o what?

O2Well this week Apple fans everywhere were excited to hear just some of the new iPhone features in the new OS3 upgrade.  Whilst we still have to wait until the 17th June here in the UK, it is a major upgrade to the already excellent phone.

However the announcement of the new iPhone 3Gs received more of a luke warm reception.  Whilst it does sound good, new video ability, maps that rotate so you actually know which way you are walking down a road (how many of us have had to walk 100 yards down a road before we realised we were walking completely the wrong way).  It just does not seem a big enough upgrade to warrant the costs O2 are quoting.

For existing iPhone 3G owners O2 are offering anyone spending £80 a month regularly the ability to upgrade 6 months early, anyone spending £50 a month regularly the ability to upgrade 3 months early.  This then still incurs the large iPhone costs and contract.  None of these options are applicable to me as I have only been on my contract for 9 months.  So what options do I face if I wanted to get this new technology.  The first and probably more obvious option would be to buy a pay as you go iPhone and just put my sim card in it, a snap at just £450+ I don’t think.  OK so the other option is to pay off the remainder of my contract of £34 a month and then start a new contract.  Obviously these costs could not be justified even if this was a major upgrade but with such a small change in phone, this is extremely hard for even rich people to justify.  Therefore I have had to accept I will not be upgrading for many months.

My second beef with O2 is that whilst internet access is free on iPhone contracts, if I wish to take advantage of the new iPhone internet tethering I will have to fork out another  £14+ a month!  You can get a USB dongles for less than this so how can O2 justify this extortionate costs?  Well most probably because they have the exclusive rights to the iPhone thus no competition.

Apple used to be a fanboy friendly company but in recent years, brand loyalty seems to have become a very expensive past time with no benefits to your loyalty.  We can only hope that one day Apple release the network exclusivity of the iPhone so that healthy competition can arise.


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2 Responses to “O2 Costs and iPhone 3Gs….o what?”

  1. baronbuzby Says:

    I’m on the £35 per month package – so that means I’m entitled to a 1 month early prize. Not good enough!

    I’m selling my 3g 16gb on ebay and buying a 16gb 3GS next week – asking for £350, but worst case is one of those website that buy phones, they are offering £200.

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