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Wed, 10 Jun 2009 iPhone 3G S upgrade – O2 owners must cancel before 19 June

Upgrade path requires prior cancellation of your current account

Mark Hattersley


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Macworld has been investigating the upgrade path for iPhone owners interested in picking up an Apple iPhone 3G S on launch day, 19 June 2009.

Yesterday we were the first to bring you news that iPhone owners would have to cancel their outstanding contract with O2, by paying the full amount outstanding for every month still on the contract.

Following further conversations with O2 customer services, we have now found that iPhone owners must cancel their contract with O2 prior to picking up the new phone.

iPhone 3G S Voice Control"You have to cancel first by giving us 30 days notice." said the O2 customer service rep. It transpires that you won't be able to just walk into an O2 or Carphone Warehouse store and pay to cancel the contract and pick up your phone.

Although you have to give 30 days notice, you won't have to wait 30 days before picking up the new phone. "As long as you have cancelled your current contract" in advance "you will be able to go in to the store and pick up the new phone" on 19 June, said O2. "They will know in the store that you have cancelled your current contract".

O2 also confirmed the current plan to charge the full rate outstanding. In the case of a person who picked up an iPhone 3G on launch at the £35 per month tarriff, they will have 7 months outstanding on the account. The cost to cancel is £245. This must be paid to O2 when you cancel the contract prior to picking up the new phone.

To discuss cancelling your contract with O2 in the UK you can call them from your iPhone on 2102.

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Comments received


Kevin said on Wed, 10 Jun 2009

What are they playing at!!! If anyone is crazy enough to go for the payout they are saying we should cancel now and hope that they have enough stock. Last year it took me over 30 days to find a store that had a 16gb one in stock. So you end up with no phone at all. Although I guess it will be very very different this year with those prices!!

Kevin said on Wed, 10 Jun 2009

Buying yourself out of the contract sounds like a right rip off! You are paying up for a service which you won't receive any of!

Justin said on Wed, 10 Jun 2009

This is becoming a joke, Apple and O2 have lost my custom over this, making people sign an 18 month contract to release new hardware every 12 months, I will wind down my contract and get a an HTC

Heckie said on Wed, 10 Jun 2009

Why don't they just give us 12 months rolling contracts… that way most people would upgrade (or at least have the opportunity to do so). seems a no-brainer to me.

Kevin said on Wed, 10 Jun 2009

What are they playing at!!! If anyone is crazy enough to go for the payout they are saying we should cancel now and hope that they have enough stock. Last year it took me over 30 days to find a store that had a 16gb one in stock. So you end up with no phone at all. Although I guess it will be very very different this year with those prices!!

Jan said on Wed, 10 Jun 2009

If you are unhappy about this, consider signing the petition: twitition.com/owzm4. I don't think anyone would argue that they should not pay more if they upgrade early, but having to buy yourself out of the remaining contract is excessive if you are going to start a new contract in its place.

Smithereens said on Wed, 10 Jun 2009

"Buying yourself out of the contract sounds like a right rip off! You are paying up for a service which you won't receive any of!"

A service you

A) Promised to use for 18 months

B) Are contractually obligated to use for 18 months

C) Are now reneging on

So, yes, they are charging you for 6 months worth of service you contractually promised to use - like any other mobile phone company would.

How would you feel if mobile companies started ignoring their contracts? If they stopped providing service when they felt like it or arbitrarily removed bundles from your package?

Another Kevin said on Wed, 10 Jun 2009

How about O2 allow users to update from the 3G to the iPhone 3GS at the subsidised rates by locking in users currently on an 18 month contract to a new 24 month contract(at 18 month contract prices)? That way everyones a winner. O2 still get their pound of flesh and the kiddies get shiny new toys!

Another Kevin said on Wed, 10 Jun 2009

How about O2 allow users to update from the 3G to the iPhone 3GS at the subsidised rates by locking in users currently on an 18 month contract to a new 24 month contract(at 18 month contract prices)? That way everyones a winner. O2 still get their pound of flesh and the kiddies get shiny new toys!

Another Kevin said on Wed, 10 Jun 2009

How about O2 allow users to update from the 3G to the iPhone 3GS at the subsidised rates by locking in users currently on an 18 month contract to a new 24 month contract(at 18 month contract prices)? That way everyones a winner. O2 still get their pound of flesh and the kiddies get shiny new toys!

Jus said on Wed, 10 Jun 2009

I'm not getting another iPhone, what a f*cking joke... Apple and O2 are greedy companies that arn't bothered about keeping customers happy.

Tonysaint said on Wed, 10 Jun 2009

Apple are doing nothing wrong - they are charging a premium price for a premium device as they have been doing for many years with their Macs. To some extent their business model has required the premium prices, but the iPhone is higher volume and competition (if and when it truly arrives) will be the deciding factor on price and thus contractual terms.

jamie Bishop said on Wed, 10 Jun 2009

While I understand that the 3G was subsidised and that O2 need to recoup this so can't let you out of your contract for free. The amount owed for the handset is not the full £35 every month! You have calls and data as part of that.

Even if they had subsidised the iPhone for £300, then this divided by 18 is £16.60, so you should only have to pay up 7 x £16.60 and not the full £35 as you would then be paying for minutes and data that you never used.

You are going to sign a new contract anyway. Not me though PAYG handset with current sim. Sell my old iPhone

Paulbuk said on Wed, 10 Jun 2009

"How about O2 allow users to update from the 3G to the iPhone 3GS at the subsidised rates by locking in users currently on an 18 month contract to a new 24 month contract(at 18 month contract prices)? That way everyones a winner. O2 still get their pound of flesh and the kiddies get shiny new toys!"

No, O2 will not get their pound of flesh because they are still losing out on the money that they paid for the phone but which you haven't paid back.

So, you sign up for another 18 month contract. Then, in 12 months when the next iPhone comes out, you will no doubt want to be allowed out of your contract again. So, O2 never makes money on the phone because everyone expects O2 to uphold their end of the contract while their customers act as if a contract was never signed.

RolfeUK said on Wed, 10 Jun 2009

I wonder how many O2 subscribers will switch if Orange get the green light to start flogging the 3GS in the next 6 months???? You can count me as number 1!!!

Ludeman said on Wed, 10 Jun 2009

@Another Kevin, and then in a year or so when a new iPhone is released you'll be stuck with another year left on your contract and wanting a new iPhone. I think O2 could put the price of an iPhone up slightly and give us 12 month contracts. (that way everyone will be just as unhappy!)

Stuart said on Wed, 10 Jun 2009

If you'er not happy with you're existing 18 month contract, you shouldn't have signed up for one in the first instance. All phone companies will charge you for an early release. Also, why the hurry to change? You're happy (presumably) at the moment, so wait for another few months and you might even get an even newer model. You don't change your car/computer/television every couple of months just because a newer version is available.

Ludeman said on Wed, 10 Jun 2009

@Another Kevin, and then in a year or so when a new iPhone is released you'll be stuck with another year left on your contract and wanting a new iPhone. I think O2 could put the price of an iPhone up slightly and give us 12 month contracts. (that way everyone will be just as unhappy!)

Cross said on Wed, 10 Jun 2009

It might just be a way of supressing sales in the UK to keep shortages to a minimum. Maybe it also enables brand expansion to new users rather than existing contract bound customers snapping up all the new hardware. Hence even more people bound to 18 month contracts. Just a thought.

SKM said on Wed, 10 Jun 2009

O2 clearly are doing very well in these trying economic times. They have not been very creative with the upgrade path.
They should permit a special upgrade price for LOYAL customers, or they are going to lose us!

James Donevan said on Wed, 10 Jun 2009

Many posters are trumpeting the 'you signed a contract' argument - which is valid comment. The irritating incongruity is that other telecoms around the world have a flat buyout fee (AT&T for instance charges $175) if you choose to cancel for any reason, at any time, during your contract.

O2 doesn't follow this good will oriented approach - and they will doubtlessly live to regret it. Customers have long memories. Instead O2 seeks to wring every penny out of a customer, offering no concessions. This is the reason the UK stands alone in creating such an uproar over the upgrade situation. No other telecom is treating its customer base so poorly.

Apple must be grinding its corporate teeth seeing this O2 situation develop as it will drastically cut into its upgrade sales.

Matt Radford said on Wed, 10 Jun 2009

Although I understand the terms of the contract I signed with O2, I still think this is a massive PR fail on their part. They are misunderstanding their customers, who are used to Apple’s 12 month iPhone upgrade cycle. O2 have also set expectations by allowing early upgrades when the iPhone 3G came out. There must be a way that O2 can maintain their revenue while also providing a less prohibitive upgrade path for current iPhone customers.

But if you do decide to upgrade, I’ve written a guide as to the cheapest way to do it:

www.allaboutiphone.net/2009/06/the-cheapest-way-to-get-an-iphone-3g-s-on-o2-uk/

Chers
Matt
All About iPhone

Jaded said on Wed, 10 Jun 2009

For me there isn't enough extra goodness in the 3G S to contemplate a change. Definitely not at those prices.

SKM said on Wed, 10 Jun 2009

Just seen this on the O2 site:
Option 1 - wait until eligible for an upgrade.
All O2 Pay Monthly customers are part of O2 Priority List and those paying £35 or more a month, have the oppotunity to upgrade early. Customers won't have to see out the full term of their existing contract before being eligible for an upgrade.

All customers continually spending over a minimum of £80.00 a month, receive a 6 month early upgrade
All customers continually spending over a minimum of £50.00 a month, receive a 3 month early upgrade
All customers continually spending a minimum of £35.00 a month, receive a 1 month early upgrade

Grumpy said on Wed, 10 Jun 2009

i bought my phone and signed up to an 18 month contract. If I now want to break that contract to get a new phone why should I expect O2 to agree? All the networks operate the same. You signed up for 18 months, so you keep the contract for 18 months or buy yourself out of it. i dont see why people are complaining if you did not want an 18 month contract you should not have signed up for one!

Grumpy said on Wed, 10 Jun 2009

i bought my phone and signed up to an 18 month contract. If I now want to break that contract to get a new phone why should I expect O2 to agree? All the networks operate the same. You signed up for 18 months, so you keep the contract for 18 months or buy yourself out of it. i dont see why people are complaining if you did not want an 18 month contract you should not have signed up for one!

Mooreski said on Wed, 10 Jun 2009

Hmmm Funny how when the old 2g phones came out after 12 month existing customers could upgrade as long as they extended for a further 18months. Why not do the same this time?

They would see more phones this way and keep their customers!

I would also like to know if their network can cope with the new phones - lets face it - coverage & speed is appauling.

Very disappointed - their strapline - See what we can do o2 - a joke!

Cross said on Wed, 10 Jun 2009

It might just be a way of supressing sales in the UK to keep shortages to a minimum. Maybe it also enables brand expansion to new users rather than existing contract bound customers snapping up all the new hardware. Hence even more people bound to 18 month contracts. Just a thought.

"All About iPhone" said on Wed, 10 Jun 2009

All about ripping off the punters.

Dave said on Wed, 10 Jun 2009

Check out more details on O2 site, can upgrade 6 months early depending on your bill.

www.shop.o2.co.uk/update/paymonth.html

CMB said on Wed, 10 Jun 2009

Apart from the hassle of cancelling my the contract, wouldn't that mean changing numbers or at least messing around with a PAC code?

Am I right in thinking I can just get a PAYG iPhone 3GS, put in my current 3G Sim Card and be happy. That way When next year rolls around I can just upgrade as normal?
Or are the sims somehow tied to the handsets?

@ Grumpy said on Wed, 10 Jun 2009

Some form of buy out would be ok. But why should I pay 7 months @£45. They will not be giving me my 1200mins or 500text messages for 7 months. Surely that has a value that should be taken off the contract. It's not like we want to end it and go to Orange. It would be for a new with o2 again.

Cross said on Wed, 10 Jun 2009

It might just be a way of supressing sales in the UK to keep shortages to a minimum. Maybe it also enables brand expansion to new users rather than existing contract bound customers snapping up all the new hardware. Hence even more people bound to 18 month contracts. Just a thought.

Jamie said on Wed, 10 Jun 2009

Wish people would stop jumping on the moaning bandwagon and look at the options.
Fair enough, O2 won't subsidise the remainder of your contract, but I called them today, and I'm perfectly entitled to buy the iPhone 3GS next Friday on Pay as you Go for £538. Sell my iPhone 3G, which sell at £300+, stick my contract SIM straight into the 3GS, so I have a 6 month contract for £238. Plus at end of contract O2 offer £150 cashback if you go on to £20 month 30 day rolling contract without getting a new phone, so its only costing £88.

Jonathan said on Wed, 10 Jun 2009

What's the problem?
I've decided the best thing is to be patient and upgrade the iPhone 3G when next year's model comes out...
I'll save a lot of money, and get a much more significant upgrade next year... hopefully better screen?
Once the OS update will be installed there's not enough differences to make me buy this year's model.

And for those who absolutely must upgrade... I don't see the point of paying to get out of the contract... wouldn't it be better to just get a new iPhone 3Gs and run both of them for a few months - maybe letting a friend or family use the older one?

Mooreski said on Wed, 10 Jun 2009

Your missing the point Jamie.

Last year O2 upgraded owners of 2G iPhones as long as you took out another 18 months.
contract. Why not now?

Anyone from O2 comment?

Ludeman said on Wed, 10 Jun 2009

@Another Kevin, and then in a year or so when a new iPhone is released you'll be stuck with another year left on your contract and wanting a new iPhone. I think O2 could put the price of an iPhone up slightly and give us 12 month contracts. (that way everyone will be just as unhappy!)

@007amg1 said on Wed, 10 Jun 2009

O2 O2 will be the one to lose, as me and many others are not desperate to go out and buy the 3Gs as it’s not even a worthy upgrade from the 3G never mind the prices they quoting. BTW the only people who want the iPhone 3Gs are the loyal customers who have bought the previous 2 iPhone’s, I can guarantee that there will not be many new customers buying an iPhone. But for all those who can’t afford the upgrade I suggest jailbreak ur 3G and most of the new features like the video camera are available, download as much Apps as u want for free. It’s time to get back at them!!!

@007amg1 said on Wed, 10 Jun 2009

O2 O2 will be the one to lose, as me and many others are not desperate to go out and buy the 3Gs as it’s not even a worthy upgrade from the 3G never mind the prices they quoting. BTW the only people who want the iPhone 3Gs are the loyal customers who have bought the previous 2 iPhone’s, I can guarantee that there will not be many new customers buying an iPhone. But for all those who can’t afford the upgrade I suggest jailbreak ur 3G and most of the new features like the video camera are available, download as much Apps as u want for free. It’s time to get back at them!!!

Tony said on Wed, 10 Jun 2009

This will be the thorn in Apple/O2's side. As this will be the worst selling iPhone in history so far, not because it's a crap phone or that people don't want it - simply that they cannot afford to cancel their contract and purchase a new one again.

I'm sure they would have thought this through a little first?

I'll stick with my 3G for now.

Ian Patterson said on Wed, 10 Jun 2009

The article needs to be rewritten in light of O2's clear upgrade path. As it stands the article is alarmist and unnecessary. Factually wrong even.

mvn said on Wed, 10 Jun 2009

I understand the contract clauses etc but O2 made the iphone a unique case when they waived the contract on the last revision with many people assuming that the same would occur again on this release, no matter what the rights and wrongs it leaves O2 in a poor light (this is being reported around the world). The fact that people are so annoyed just shows the demand for this product even on a minor upgrade, O2 could have had a queue of upgraders if they had have thought of a better plan. My concern is that products such as the iphone get cheaper to manufacturer as time goes on and the increase in price shows increased profit margin for apple & O2 at a time when people are slowing their spending. Also the introduction of longer and longer contracts mean the chance to get the latest stuff is becoming more and more expensive. Maybe good for the balance sheet but it makes bad PR.

mvn said on Wed, 10 Jun 2009

O2 are a business like any other, to make as much money as possible, if sales slump then prices will fall, simple fact of life...So vote with your feet if you disagree.

Norman said on Wed, 10 Jun 2009

when considering whether to take an 18 or 24 month tariff, there is one important factor that you need to consider that hasn't been mentioned so far. Whereas an 18 month contract only allows you to upgrade at the end of the contract, a 24 month contract allows you to upgrade every 12 months.

David James said on Wed, 10 Jun 2009

DO WHAT I DO.... you get your new phone and contract (yes, OK, it's a new number)... but you are allowed to have as many phone contracts as you want. Reduce the contract to the lowest tariff - I think that's OKm after 12 months on O2 then you at least can pay off the remainder of the contract in instalments, plus you can use the minutes and texts up on both contracts. It makes far better sense than paying it all off in one go, then not being able to use up the minutes and texts you paid for. O2 must think we are stupid. I overlap contracts all the time. It's basic stuff.

@ Norman said on Wed, 10 Jun 2009

Do you have any more details on that? 24 month contract? No buy out costs, or upgrade fees?

@ David James said on Wed, 10 Jun 2009

You have to change your number all the time then don't you? You can't port it across. Alot of ppl can't go changing there numbers all the time.

horza said on Wed, 10 Jun 2009

Why should O2 ignore a perfectly legal contract? So you want to upgrade, fine, wait for your contract to expire like anyone else or pay up. I'm an iPhone user on Orange, sure I want to upgrade but I'm tied to Orange till December. It's not like anyone's forcing you to upgrade. All this whining is pathetic.

Chris said on Wed, 10 Jun 2009

I don't know why people are up-in-arms about this, all UK mobile companies will normally only let you upgrade in the last month of your contract or make you buy out your contract!

@ Chris said on Wed, 10 Jun 2009

I don't think they all make you pay the full line rental outstanding while giving no discount for outstanding mins and texted owed to you? 7 months worth would be 8400 mins and 3500 texts!!

kdawg said on Wed, 10 Jun 2009

What's the big deal? You've got 7 months left on your 3G 8GB contract, you're on £35 per month, so:

Sell your iPhone 3G, you'll get around £250 or even more. Call O2 and quickly switch to the £30 a month tariff (you can do this if you're 9 or more months into your current contract. Cost to cancel is now £210 (7 months x £30) NOT £245.

£210 (cancel fee) + £184.98 (Cost of iPhone 3GS 16GB)= £394.98
BUT
£394.98 - £250 (average resale value of iPhone 3G) = £144.98 -> Actually cost to upgrade 7 months early to 3GS and sign a new contract.

Cheaper then if O2 offered us an early upgrade with no cancellation fee where we would have to pay £184.98 for the handset and sign a new contract.

When there is a will there is a way!

Jon H said on Wed, 10 Jun 2009

A contract of say £35 doesn't just go to the handset - it pays for calls, texts and internet too. Why is this not acknowledged in the upgrade path by Apple and 02?

Alex said on Wed, 10 Jun 2009

@ Mooreski: The upgrade from 2G to 3G was allowed because the owners of the first iPhone didn't have it subsidised and had paid full price for it. The jump from 3G to 3Gs would mean subsidising both and O2 would be losing money from the 3G handset.

Jon H said on Wed, 10 Jun 2009

Apple and 02 should do more to reward loyal customers, not because they are obliged, but simply because they trumpet that old-fashioned value of Customer Service. At the moment, it is obvious many customers feel very badly treated.

Steve said on Wed, 10 Jun 2009

It's interesting how O2 have changed their policy on iPhone upgrading, compared with last summers 'free upgrade' to the iPhone 3G from the original iPhone.

However, the more I think about it the more it gets me wondering... what if? What if Apple are planning to launch an iPhone Pro with built in iChat video calls or other features within the next 6 months? or even an iPhone Nano! If new products are to be released at times other than annually, then O2 are going to be extremely against offering free upgrades, as they could be doing so with customers every few months. I think most Apple users would love the opportunity to get the latest Apple tech (iPhone) 'free' as and when it's released. But commercially, it's just not a viable option for O2.

Alas, I'll be keeping my iPhone 3G until the current contract expires in January 2010... and then I'll be upgrading to whatever is the latest iPhone available.

Steve said on Wed, 10 Jun 2009

It's interesting how O2 have changed their policy on iPhone upgrading, compared with last summers 'free upgrade' to the iPhone 3G from the original iPhone.

However, the more I think about it the more it gets me wondering... what if? What if Apple are planning to launch an iPhone Pro with built in iChat video calls or other features within the next 6 months? or even an iPhone Nano! If new products are to be released at times other than annually, then O2 are going to be extremely against offering free upgrades, as they could be doing so with customers every few months. I think most Apple users would love the opportunity to get the latest Apple tech (iPhone) 'free' as and when it's released. But commercially, it's just not a viable option for O2.

Alas, I'll be keeping my iPhone 3G until the current contract expires in January 2010... and then I'll be upgrading to whatever is the latest iPhone available.

ohhhh said on Wed, 10 Jun 2009

Boooooooooooooooooooooooo to o2!!!! Booooooooooooooo!

CMB said on Wed, 10 Jun 2009

Everyone: Be fair to 02. They have now updated their webpage clearly stating the options for updating. Option 2 seems easiest and the most hassle free.

Option 2 - purchase the iPhone 3G S on Pay & Go from 19 June. You can give your existing iPhone 3G to someone you know.

Pay Monthly customers can place their existing iPhone 3G sim card into the iPhone 3G S and receive all the latest functionality. Customers must continue to pay for their existing Pay Monthly tariff.

Barry Coombs said on Wed, 10 Jun 2009

Just sell your old phone to envirophone get £180, buy out the contract and get a new one?

Slaphead said on Wed, 10 Jun 2009

I've been with O2 for over 10 years with 2 accounts and broadband. Needless to say I won't be a customer after January once my contract expires and I'll not be using an iPhone either. I don't expect the new phone for nothing but feel like my loyalty is being thrown in my face. The new HTC Diamond 2 looks very nice and is going to get WinMobile 6.5. Bye Bye O2 and Apple...won't be back!!

Barry Coombs said on Wed, 10 Jun 2009

Just sell your old phone to envirophone get £180, buy out the contract and get a new one?

Michael Curtis said on Wed, 10 Jun 2009

How about $99 converting to £96!

Marc C said on Wed, 10 Jun 2009

Hang on a minute!
I dont think there is enough difference between the 3g and 3gs to bother changing over. None of the new features are important to me. 2mp to 3mp camera, hardly a change and video, dont need it. etc etc.

So I'm waiting till next year to see what comes along then ;)

David James said on Wed, 10 Jun 2009

It's a bit like people who moan at Apple for the iPhone's missing features yet fail to be grateful for them inventing the other hundreds of wonderful features it DOES have. Apple don't owe us any more than what we CHOOSE to pay for. O2 are the same. ... I do though think the tethering charges are SCANDALOUS!!!

David James said on Wed, 10 Jun 2009

I LOVE IPHONES, THE LATEST TECH AND WANT A 3GS... but, most big companies are blood suckers... any contract is weighted in the companies favour... it's life. We help them make money, but in fairness... without the big boys, we'd have no toys in the first place. All phone contracts have the same get-outs (generally) and yes we pay a bit more money, but we have the product to show or it. We get what we pay for. I can't moan at O2 for the upgrade situation as they are just being normal... all I moan about is the cr*p signal anywhere other than in the big cities... it's poor at the best of times. It's the poor coverage that limit's the iPhone, not the upgrade policy. I want a new phone dearly, but we can't all act like spoilt children thinking we are special just because we have the best gadget in the world.

MacAssist said on Wed, 10 Jun 2009

When did the cost of the iPhone increase to £550? The iPhone costs about £170 to build, I'd love to know what price O2 are paying for the phones, I'd be very surprised if it was more than £249.

The cheapest way to do it I think is to sell your existing phone on eBay, currently going for £300+, buy a PAYG phone and use your contract SIM from your old phone. Total cost of upgrade is £100-249 depending on model and by the time the next phone comes out, you will be eligible for an upgrade.

Michael Curtis said on Wed, 10 Jun 2009

How about $99 converting to £96!

Dan P said on Wed, 10 Jun 2009

You know....I don't care!!! My phone does the trick and I have all the music I want so stuff em.

glyn_e said on Wed, 10 Jun 2009

I think Apple and O2 need to rethink their strategy, and price the iPhone and tariffs to fit a 12 month cycle.

For most of us on O2 it will be better to buy the iPhone on PAYG and see what upgrades are on offer with next years release.

John Wonder said on Wed, 10 Jun 2009

o2 can go fxxk themselves.

Keith Doherty said on Wed, 10 Jun 2009

YOUR ISSUES ARE WITH THE O2 CONTRACT AND NOT APPLE

Fact when you have entered into a legally binding contract with O2 you accept their offer to provide YOU with MOBILE SERVICES for a period of 18 months and as part of the bargain they offer to PROVIDE YOU with a phone (Could be any in their range) at a subsidized price.

O2 don't care about whether you want the Video capture facility or double storage on-ITS NOT their concern right now.
They already have YOUR custom for supplying MOBILE SERVICES and you can not expect another subsidized phone (excepting as a maintenance replacement) within the minimum contract period
(THEY correctly OPERATE FOR PROFIT not charity).






Keith Doherty said on Wed, 10 Jun 2009

continued

Go try Vodafone or T-MOBILE a differing phone and ask to breach contract (ASK FOR UPGRADE WITHIN CONTRACT PERIOD) -You will also have to buy out the contract and you would certainly loose any legal challenge here as you ARE in BREACH of contract.

O2 are seeking compensation for buying out the CONTRACT and NOT for recovering subsidies for the iPhone or any other phone for that matter.

IF you don't want a contract you have the opportunity to buy a Pay as You GO unsubsidized iPhone.

@Keith Doherty said on Wed, 10 Jun 2009

"YOUR ISSUES ARE WITH THE O2 CONTRACT AND NOT APPLE" but it makes Apple look bad.

Brett said on Wed, 10 Jun 2009

@Smithereens
Providers do fail to deliver on contracts and promises... T-Mobile just started removing WiFi hotspots that I use (without any migration plan or compensation), and the alternative 3G stick I have from them doesn't work at those locations, and images and web pages are re-written to compress badly (a limitation not mentioned in their advertising) and they still expect me to continue the contract...

Albert said on Wed, 10 Jun 2009

All those on a contract could just wait for 6 months. You don't need a iPhone that badly.

David James said on Wed, 10 Jun 2009

WITHOUT APPLE WE WOULD HAVE NO IPHONE. get off their backs. Without them we'd still be tapping about on numeric keyboards, playing Snake, or Breakout on a tiny screen, fiddling with polyphonic ringtones or getting excited by Crazy Frog downloads and trying to cram our songs on a 2gig MicroSD card. or worse still, having to restart and resync 5 times a day with a w*ndows mobile phone. Take a deep breath, have a cup of camomile tea and wallow in the bliss we have in front of us, the iPhone we have now that may never have been if it were not for Apple...

David James said on Wed, 10 Jun 2009

forget the late C&P or MMS and recognise what made us wet our pants in the first time.. with the first version, and with OS 1.0. We cried with excitement and wooopped like sycophants and queued for hours. O2 are never going to be angels... most of the telcom companies upset us one way or another. They do charge money for old rope, and maybe Apple will have the impact of their new baby dented by telcom greed, but don't blame the Apple. They get things wrong, but their rights outweigh them fifty-fold.

MacAssist said on Wed, 10 Jun 2009

Here's a little tip, if O2 change their terms and conditions before the end of your contract, the O2 terms and conditions allow you to cancel without penalty.

Strider said on Wed, 10 Jun 2009

I bought the 3g version 18 days. Can not cancel contract as 4 days over the cooling off period. I am totally p####d off. O2 will not budge so I am stuck for 2 years.

true fan said on Wed, 10 Jun 2009

Nokia bring out phones every 3 months do people moan then they can't get the latest model whilst on contract...no

The early upgrade last summer was because we paid out right for the 2g handset effectively outs from the go.

For those of us who wish to keep up with the best we pay the price to do so.

I don't expect a new MacBook cheaper because I already have the old one so why expect it off the phone.

Bring on December when the majority of us will be able to upgrade what a cool new year start

Ex Windows Mobile User said on Wed, 10 Jun 2009

Was going to leave T-mobile, loose my HTC Touch Diamond and buy an iPhone now they've got the formula just right (cut & paste, Tom Tom) - happy to pay the cost of the phone but O2's tethering charges are way too high and the poor customer services being reported are terrible. This whole O2 mess has convinced me to stick with TMobile and get an Android on a 12 month contract; maybe next year iPhones will be available on all networks. Apple have come out with a great product but they could have avoided the poor launch by not signing exclusive deals with networks. Haven't brought an Apple product for years, if I got on with iPhone I was planning to get a Macbook Pro - Android with an Android netbook is now the way forward; sorry Apple.

midger said on Wed, 10 Jun 2009

I'll keep mine for the extra 6 months then see who else is hawking the iphone. If no-one is then I'll go PAYG until someone is (hopefully Vodaphone) and then get one with them. Happen they may offer an incentive to keep customers afer 12 months (O2 doesn't).

I agree, a contract is a contract and must be honoured but O2 must not expect customer loyalty at the end of the contract...

Tertherer said on Thu, 11 Jun 2009

Its been pointed out elsewhere that the tethering charges are in line with industry levels. It seems that apple customers think they are special and want to live in a parallel universe.

Michael Curtis said on Thu, 11 Jun 2009

How about $99 converting to £96!

M.X.N.T.4.1 said on Thu, 11 Jun 2009

Paying off the proportion of your monthly bill that represents the subsidy of the phone in the first place makes sense and is to be expected, but having to pay the full amount, including the allowance for your minutes/texts/data - which you will not get the benefit of - is insane. They're getting you on a new contract, they're being paid for the phone, anything more is them being greedy and ripping customers of pure and simple. There is no other justification for it.

M.X.N.T.4.1 said on Thu, 11 Jun 2009

If people were looking to break their contract and go elsewhere I would understand (not like) them making you pay the entire balance, it is after all a contract, but they're not losing a customer, they're getting one for a longer period. You would think they would want people to extend their contracts.

quarry said on Thu, 11 Jun 2009

@Michael Curtis,

How about paying $70 per month for 24 months with a grand total of zero text messages or $75 per month for 200 text messages.

Quit with this rip-off britain BS will you. Phone data plans vary around the world according to network infrastructure, local businesses rates, usage, etc... Britain is comparatively cheap.

Yes. The iPHone is expensive. But have you tried buying a Nokia N97 on Pay as you go? It's about £500.

That's why you get a subsidy on subscription. You signed up for 18 months - just sit it out and get a new one in december. The iPhone 3G S isn't that much different to the 3G as far as I can tell.

You don't have to buy everything Apple makes, you know. It's okay to skip the odd product.

David Jack said on Thu, 11 Jun 2009

Please stop going on about this. Simple way to do it. Sign up for a 24month contract and skip one release of the iPhone. That way when your 2year contract runs out, you'll be ready for the next one.

Ynda said on Thu, 11 Jun 2009

Sounds like lock-in

Simon Gittus said on Thu, 11 Jun 2009

I resited upgrading to the iPhone 3G after buying the original because I knew full-well that this would happen. A contract is a contract - you can't expect o2 to let you off because you want the latest version.

My 18 months has now just finished and I'm free to upgrade. I'll also get a 24 month contract so in 2 years upgrade again with no hassle.

Simples!

Darius said on Thu, 11 Jun 2009

Some people are beginning to sound like spoilt children. You signed a contract and it was on that basis that O2 offered you the iPhone at a subsidised price. Just because Apple introduce a new model, it doesn't give you the right to terminate your contract without penalty. None of the other networks in the UK would allow you to leave a contract without penalty just because a new model comes out.

quantise said on Thu, 11 Jun 2009

Most of us get that we have locked ourselves into a contract and under normal circumstances we would simply ride it out until the contract was up for renewal without comment.

What has happened here is that O2 set a precedent last year by offering an early upgrade for original iPhone users without making it clear that this was a one-off. In fact some claim they were told that there would always be an easy upgrade path.

I imagine last year that Apple's 12-month upgrade cycle and O2's 18-month minimum contract cycle was seen as a potential impediment to the sales of the iPhone 3G and so a way was sought to fix a potential disaster.

Cont'd

quantise said on Thu, 11 Jun 2009

Cont'd


The way this is being handled by O2 so far - and we still have a week to go - looks like it could seriously impact the sales of the 3Gs. It has created a PR nightmare for both O2 and Apple and I can imagine some serious behind the scenes discussion over this.

When all is said and done, I'm a pragmatist and will simply continue to use my 3G for another year and upgrade when the next iteration of the iPhone surfaces. That's fine if that's the way it has to be but it's bad for Apple as they will lose many sales of the 3Gs because of it and O2 have a customer relations issue they surely can't be enjoying.

pacer said on Thu, 11 Jun 2009

Apple no doubt will be feeling pretty proud of themselves that people are soooo desperate to get a new iphone they are going completely nuts about the fact they signed their 3G contracts.

I reckon it's because they can't stand the thought that they might be sitting beside someone who's got one that's going twice as fast as theirs....

Really guys, chill out.

If you got an HTC and they brought a new one out you'd just wait for the contract to end and then upgrade.

You might feel like a disciple, but to O2 & Apple you're just a customer.

ScottN said on Thu, 11 Jun 2009

Seems like O2 have taken all iphone 3GS stuff down from their site (as at 9pm). Wondering if perhaps they're having a rethink about the pricing and upgrade scenario...

scm256 said on Thu, 11 Jun 2009

A lot of people moaning about having to stay with a contract which is what every phone company do. Its not just a phone remember you get the equivalent of an iTouch for a fraction of the price. If you bought a first gen iTouch you wouldn't get a second gen one upgraded for free.
I do think charging for tethering however is a bit of a joke as you get unlimited internet anyway so why pay twice?

Chris said on Fri, 12 Jun 2009

Well I will get one PAYG, I already have mobile broadband so the tethering is no concern to me. Least in a year I can get the new phone without any contract issues.

philip said on Fri, 12 Jun 2009

O2 are unlikely to be the only Iphone providers next year.
Think about it, early adopters of the iphone aren't going to buy a 3GS, even in 6 months time, they'll wait for the next version.
People looking to buy one now will basically search for Iphone O2 on the net and find pages about how terrible O2 are and how a new Iphone will be out in a year buy they won't be able to get it due to an 18 months contract. Thus, sales will be very low, Apple will be very annoyed, O2 will be very buggered.

karl_125@hotmail.co.uk said on Fri, 12 Jun 2009

hi i boiught a iphone 3g on launch day with o2. is this saying the only way i can get iphone 3gs is to cancel my contract and pay £245? then take out antoehr contract with the iphone 3gs? or couldi wait till my contract finishes then upgrade to the iphone 3gs? how much would that cost? karl

Bev said on Fri, 12 Jun 2009

Chris I am intending to purchase using PAYG just need to transfer my number & credit as I am with o2 atm
Apple don't have the prices online yet but o2 have them for PAYG customers

iPhone 3G S 16GB - £440.40
iPhone 3G S 32GB - £538.30

You need to use the SIM in the iPhone and then fill out the form at o2 onilne if you wish to keep your number

Bev said on Fri, 12 Jun 2009

Chris I am intending to purchase using PAYG just need to transfer my number & credit as I am with o2 atm
Apple don't have the prices online yet but o2 have them for PAYG customers

iPhone 3G S 16GB - £440.40
iPhone 3G S 32GB - £538.30

You need to use the SIM in the iPhone and then fill out the form at o2 onilne if you wish to keep your number

Rob said on Fri, 12 Jun 2009

Some people just want everything their way. A contract is a contract - and if you really are as good a client as you think you are just threaten to leave o2 at the END of your CONTRACT. If they dont do anything about it - maybe you are not so good. My spend is £200 pcm and Orange virtually offered me anything to stay with them. I moved because the service, coverage and phones are better on 02 (orange customer for 10+ years) The iPhone 3G or 3GS is still the very best tool out there for business users and at the end of the day they are the biggest spenders. The reason there is no credit for the call part of the monthly payment is that they really dont cost anything. Something crazy like .001p to send a text. Most of your rental is payoff for the phone and profit.

Rob said on Fri, 12 Jun 2009

...the fact everyone is so heated about it just goes to show how good the product really is. Dont ever hear anyone bitching so much about an HTC or the latest version of windows (non)mobile!

Mr Obvious said on Fri, 12 Jun 2009

O2 are blatantly contributing to this thread, either directly or through a PR supplier.

I was on Orange 12 years before iPhone. Their customer service beats O2's hands down. If you have a problem with O2 (which I did - inconsistent service, so they actually weren't fulfilling their side of contract) you have a cat in he'll's chance of getting it rectified quickly and efficiently if at all.

mamac said on Fri, 12 Jun 2009

I got my 2G a few months ago and it's a good phone. I am on a 30£/month x 18 contracts. I am not bothered by the 3GS. It has not much more to offer. The battery is slightly better which doesn't fix the current issue, and still no flash working on Safari. I paid 150 £ for the 16 Gigs, honest there's no point in paying more than 50 quids for an upgrade. The idea of a new contract for 18 months if I were given the new model is not even tempting. Next year I will see. IMO O2 is a better provider than Orange. But who knows? I might go for another brand (and quite likely another provider next year). Companies never reward their older customers. It's the same in every kind of business. They only look at the competition. All in all everyone loses. But well, i'm happy with my phone so I'll keep it for a while.

james said on Fri, 12 Jun 2009

How about.....waiting!
Radical concept I know, but we are all like a bunch of spoilt brats - we want the new toy, and we want it now!!
We are rabid consumers champing at the bit, furious with any delay in gratification. It's not about turn by turn gps, it's about where you are going and what you'll do when you get there, not about voice dialing, it's about who you are speaking to and what you are saying. It all a false promise and it's time we woke up

surtinerfe said on Sat, 13 Jun 2009

I have been an 02 customer for more than 4 years spending a lot of money and I've been told that I am no eligible for an early upgrade, basically they are just taking the piss so when my contract finishes I'll change provider, that's it

surtinerfe said on Sat, 13 Jun 2009

I have been an 02 customer for more than 4 years spending a lot of money and I've been told that I am no eligible for an early upgrade, basically they are just taking the piss so when my contract finishes I'll change provider, that's it

Carrot said on Sat, 13 Jun 2009

After the 3.0update there is little differance I don't use video and the camera differance isn't huge and it isn't hard to find what you want so we don't need voice recognition. So can someone please tell me how much a compass is on the app store and for those reasons I will not be updating

Antony said on Sun, 14 Jun 2009

Why dont you just purchase the new 3gs phone on a new contract and keep your existing final 7 months contract running. sell the old iphone for 300 plus and switch the sims to utilize the minutes/texts.

Jay said on Mon, 15 Jun 2009

I don;t see why people are getting so angry.. Its not like Nokia, Sony Ericsson only bring out handsets every 12 months or so.. It more a point that current iPhone users are crying because they want something they can't have for free.. O2 is a business, All the cry babies go to another Network, free up those iPhones for those that want them now :) Boo hoo

Ynda said on Mon, 15 Jun 2009

Jay, you just don't get it. Nokia / Sony etc don't worry about this sort of thing Apple does. Apple users do too. The iPhone is not just another handset...

Bennyappleboy said on Mon, 15 Jun 2009

I have to say i am becomming increasingly dissapointed by apple. I bought my macbook in a time when apple offered premium machines at a good price. Now that everyone has bought one and they are doing well, they forgot what put them there, and started offering everything too quickly and with too little substance!

iphone 3g was missing a lot of standard phone features, now theyve made a big step in the right direction but its still way behind (apart from the app store etc)

even the laptops, there isnt a standard aluminium macbook anymore, less than 12 months after they started making those theyve stopped, and now the macbook pro is... well... a macbook.

apple should stop and think about what theyre whole image is. providing premium computers to premium users, not jumping on the shiny toy bandwagon.

Especially with the iphone, dont get me wrong, i have one, i got mine on PAYG, but with all the pricing etc its as if they DONT want you to buy one!

Jimmy said on Mon, 15 Jun 2009

I still have my iphone 2G which I paid for in full and wasn't subsidized. My 35 a month. Is purely line rental. I don't think I should be treated the same as 3G owners.

Brian said on Mon, 15 Jun 2009

The silver membership to upgrade me month early is not a special deal. The smallprint in my o2 contract advised I could upgrade in the seventeenth month of my 18 month contract. So one month before your contract offcally ends. I did this the last time I upgraded.

Chris Deeprose said on Mon, 15 Jun 2009

You DO NOT HAVE TO CANCEL BEFORE GETTING NEW CONTRACT!!!! ffs, why do people post this bull crap!

I went into carphone warehouse and ordered my new contract today and it passed just fine, spoke to o2 beforehand and they said no you will be treated like a new customer and thats that!

stop listening to crap on the internet and go sell your bloody 3g and pay off your contract. done

@Chris said on Mon, 15 Jun 2009

Congratulations. You now look like the biggest idiot in this comments section (and let's face it there's some stiff competition).

So let's assume that either

A) You don't have an iPhone and have just ordered a new one
or
B) You've just ordered a new second iPhone and are going to be paying two contracts.

See here where it says:
Option 3. pay the remainder of their monthly line rental in one payment and sign a new Pay Monthly contract.
shop.o2.co.uk/update/paymonth.html

Did you do that?

@Chris again said on Mon, 15 Jun 2009

Or alternatively, it could be hidden option C. Where you are SHOUTING that you don't have to cancel beforehand, by SHOUTING that you've just been in a store and cancelled (I presume, before picking up the iPhone 3G S on friday)

Am not quite sure. All the SHOUTING makes it hard to follow you.

nuggetstump said on Mon, 15 Jun 2009

I just thought that they'd let existing iPhone 3G customers upgrade for £90 or something and still keep their contract going.

But yet again, a lot of people would probably find that ridiculous.

Also, there's no point in trying to win over this discussion because someone's always going to have something negative to say about it haha.

So that's my opinion basically.

mjam67 said on Tue, 16 Jun 2009

if any of you took out the carphone warehouse insurance as long as you have had the iphone 9 months you can simply return the phone tell them you don't want it any more pay £29.99 and they have to pay the remainder of the contract. As long as you have the box cables booklets and the phone is in good nick they have to take it back. Then go and start a new contract!

mjam67 said on Tue, 16 Jun 2009

if any of you took out the carphone warehouse insurance as long as you have had the iphone 9 months you can simply return the phone tell them you don't want it any more pay £29.99 and they have to pay the remainder of the contract. As long as you have the box cables booklets and the phone is in good nick they have to take it back. Then go and start a new contract!

Adam said on Tue, 16 Jun 2009

why are people moanig about the fact they cannot get a new phone the day it comes out? O2 is a business you wouldnt buy a new car and then kick off when the company brought out a newer version of that car and wouldnt let you have it at a cheaper price, if you worked for a company you wouldnt let them pay you less because you worked fo them a second time, you signed up to a contract with o2, they are giving you what was agreed, they owe you NOTHING else, no early upgrades,no free upgrades, its not about loyalty or customer serivce, i bet you were happy with your phone until they announced the new one, so either pay for what you want, or shut up moaning because its a phone, a piece of plastic that lets you talk to people you know end of story!

pot's said on Tue, 16 Jun 2009

tut tut tut

mr sensable said on Wed, 17 Jun 2009

do the maths people !!!
its cheaper over an 18 month period to get the new iphone 3gs as a PAYG and use your sim you have now, then in 6 months time (when contract ends) just switch to a simplicity tariff !!! over 18 months you will save over £150 + you get double the text if you order you simplicity online + you wont be locked in to another stupidly long contract !!! the only down side (very small one) is when your contract runs out and you switch to the simplicity tariff you will loose the visual voice mail (which is a small price to pay) ooh and the stupid cloud service (pile of pants that is) lol so cheer up, every cloud has a silver lining lol

mr sensable said on Wed, 17 Jun 2009

oohh i forgot to add, you can sell you old 3g phone on ebay.
quids in, cha ching

mr sensable said on Wed, 17 Jun 2009

oohh i forgot to add, you can sell you old 3g phone on ebay.
quids in, cha ching

Nick said on Thu, 18 Jun 2009

Wait for the Iphone 3Gt allegedly coming around December 09; that may have a better camera for a start. Who wants to 'upgrade' for a 3mp camera when all the competition are on 5 or 8mp? If Apple want to beat the opposition then at least an 8mp if not more, as in 6 months others may have even more and a vidoe conf camera too!

David said on Fri, 19 Jun 2009

o2 can have my £125 to pay off the rest of my contract if they want, but they won't get a penny more from me. I'll leave them and switch to another network and get a phone with a decent camera. They will lose my business.

Aternatively, they can get my £125 over the remainder of the 5 months of my contract, and then they will also get 18 more months of my business and 18 months more of £, and possible longer.

If they chose option 1 and let me walk away to another provider they are morons, I suspect they are...

David said on Fri, 19 Jun 2009

o2 can have my £125 to pay off the rest of my contract if they want, but they won't get a penny more from me. I'll leave them and switch to another network and get a phone with a decent camera. They will lose my business.

Aternatively, they can get my £125 over the remainder of the 5 months of my contract, and then they will also get 18 more months of my business and 18 months more of £, and possible longer.

If they chose option 1 and let me walk away to another provider they are morons, I suspect they are...

Rikki said on Sat, 20 Jun 2009

The reason O2 want the full rest of the contract paid off, even though you would lose minutes and texts, isn't just because it's a contract. It is their payoff for the credit they gave you when they gave you a subsidized iPhone.

A bank doesn't just ask you to pay back the money they loaned you; they charge you interest. O2 only gave you a cheaper iPhone on the proviso that you would eventually pay then £35 x 18 months.

The irritating part is that they have 18 month contracts while the iPhone upgrades every 12. In fact, why do 18 month contracts even exist? I hate them. Plus it leaves a 6 month limbo when you're paying for nothing while waiting for the next iPhone.

Can anyone verify the claim that on 24 month contracts you can upgrade after 12?

The other difference is that Nokia and SE and Moto only release major new phones worth buying every couple of years. Apple irritatingly upgrade the exact same phone just enough to make it desirable.

Rikki said on Sat, 20 Jun 2009

My main concern is that if no-one buys the 3G-S then Apple might drop the Nike+ functionality :-(

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