Pay as you go Apple iPhone launchedO2 launches contract-free iPhone in UK

17 September 2008

3G iphone

The second-generation iPhone 3G

The first pay as you go iPhone 3G went on sale yesterday. The move allows customers to use the device without subscribing to a long-term, expensive contract, but the phone comes with a high price tag. The 8GB version costs £349.99 and the 18GB model is £399.99. They’re available from Apple, 02 and Carphone Warehouse stores.

Once again O2 has exclusive rights to the handset. It’s set up to use O2’s Favourite Place tariff (although it can be switched to any of its prepaid tariffs), with a minimum monthly top up of £10/month.

Tariffs

Top up by £10-£14, and you receive 500 free minutes to any UK landline or O2 number; by £15-£29, and you receive 1000 minutes; and £30+, for unlimited minutes.

The deal also includes unlimited UK browsing and Wi-Fi for the first 12 months (after this it costs £10/month). Standard calls made outside of your allowance cost from 5p/minute and text messages cost 10p each.

In comparison, for contract customers the 8GB iPhone is free on O2's £45 and £75 tariffs and £99 on its £35 and £30 tariffs. The 16GB version is free on its £75 tariff, £59 on the £45 tariff and £159 on the £30 and £35 tariffs.