There is a large debate going on, on Twitter at the moment about O2's stance on iPhone 3G - 3G[S] upgrades, which is basically if you want to upgrade you have to buy yourself out of the contract. Now this has come as a shock to a lot of iPhone 3G owners, following last years easy upgrade path from the 2G - 3G, iPhone owners were just spoilt. When push comes to shove, everyone was sold a contract with a fixed length, and you have to honour that or pay the price to remove yourself from it, it's that simple.
Don't get me wrong I don't think everything O2 is doing is right but forcing people to honour their contracts is, lets face it no other mobile phone user gets to get out of their contracts early. However there are a number of issues I have with O2s 3GS prices/tariffs.
1. Charging extra for tethering is OK, charging an extortionate amount is not, a few suggestions:
- Give 500MB/1GB free to all iPhone pay monthly subscribers.
- Have more levels of tethering, e.g. 1GB, 1 Day, 1 Hour etc.
- Offer a flat fee for including it for the length of the contract, e.g. if you agree to 18 months on it it is only £5 per month.
Basically I think the main issue is this, O2 sees the iPhone as just another mobile phone, so it offers the same subscription model, bolt ons and uprgade protocols that it would on any other phone. However the iPhone is an evolving device that looks as if it is going to be getting a significant upgrade every year, and will continually be adding new features/services. This should be reflected in O2's handling of it.
Now I have never owned an iPhone but am planning on buying a 3G[s] on release, so here's my plan. I am going to go for the 32GB iPhone 3G[s] on the £45 a month contract for 2 years. Now why 2 years I here you ask? Well assuming O2 follow similar pricing for future iPhone releases and Apple follow the 1 year release cycle I don't want to be in the updating mid life-cycle problem an facing charges to get out of contracts early. So lets see the comparison.
Option 1 - Standard 18 Month, Upgrading when possible
June 09 - iPhone 3Gs 32GB - £175 + (18x45) = £985
Dec 10 - Future iPhone 1 - £175 + (18x45) = £985
Jun 11 - Updated mid life-cycle so can't get Future iPhone 2 without buying out 12 months of remaining contract.
Price for 2 iPhones £1970
Tied in for - 36 months
Option 2 - Buy out of contract
June 09 - iPhone 3Gs 32GB - £175 + (12x45) + (6x45) = £985
June 10 - Future iPhone 1 - £175 + (12x45) + (6x45)= £985
June 11 - Future iPhone 2 - Would have to buy out again
Price for 2 iPhones £1970
Tied in for - 24-30 months
Option 3 - 2 Year Contract + PAYG
June 09 - iPhone 3Gs 32GB - £97 + (24x45) = £1177
June 10 - Future iPhone 1 - PAYG (Switch sims) - £540
June 11 - Future iPhone 2 - Just start another 2 year contract
Price for 2 iPhones £1717
Tied in for - 24 months
