O2 offers iPhone tethering, but at a steep price

iPhone tethering deal from O2 starts at 3GB for £14.68 per month, 10GB for £29.36


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When Apple announced tethering plans for the new iPhone at yesterdays opening Worldwide Developers Conference (WWDC) keynote speech in San Francisco the news was generally greeted favourably.

The ability to share the 3G connection on your iPhone with your Mac notebook or PC laptop has long been on the wish list of many, the popularity of mobile broadband evident by the number of high-street deals currently available from the likes of Carphone Warehouse.

Scott Forstall, senior vice president of iPhone Software at Apple, confirmed tethering would be available initially depending on carrier availability, with the UK's O2 among the 22 carriers in 44 countries offering the service at launch.

It was a rare occasion when UK O2 customers beat US AT&T customers where the service will be offered, along with MMS, until later in the year.

O2 has revealed the cost of tethering, partnering with The Cloud 5,000 hotspots, and later BT Openzone, for the service. Penalties for exceeding your 'iPhone Internet Tethering Bolt Ons' bundle limits are also listed while the small print adds, "excessive usage policy applies to all unlimited services."

Here is an image that O2 has provided detailing tethering costs for Pay Monthly customers.

And details of O2 tethering costs for business customers.

Like O2's upgrade path for older iPhone owners, the price structure looks likely to be a cause for concern to many, especially those looking for the occasional tethering option when a pay-monthly mobile broadband offer might prove a much better deal.

One reader called Siobhán said said, "The prices are daft in a recession or otherwise, waiting six months to upgrade is a pain and the tethering costs are just plain mean. There's no flexibility for people like me who would want to use tethering only occasionally."

Broadband Genie currently lists the 'Top 10 most popular broadband packages' for those on the move.

The best pay as you go deal appears to be Vodafone and 'Top Up And Go,' £39 set-up, £15 per GB top up with the first GB offered free and no 30-day expiration for the data.

T-Mobile 'Pay Per Day,' meanwhile is £24.46 set-up, £2 per day/3GB.

For those wanting a contract, 3 offers mobile broadband for £15 a month when you sign-up to a 24 month contract, with a 15 GB per month limit.

O2, Vodafone, 3, T-Mobile and Orange all offer PC laptops or netbooks as incentive for signing up to a 24 month contract.

O2 prices increase further if you use your iPhone as a modem abroad, £2.94 a MB in the EU and £6 a MB everywhere else.

O2 has said Internet tethering doesn't work on Pay & Go with any handset or older 2G iPhones.

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Comments received


Rrrrrrrrrrrreader said on Tue, 09 Jun 2009

The iPhone experience I have no doubt is exceptional compared to other phones, but you pay a price. One at present I can't afford. So I'll stick with 3 Mobile who are giving free Skype, free Internet and free texts for 90 days whenever I top up - and all I need to top-up is £5 a month. So my Nokia E71 phone just started costing me less than £2 a month PAYG for email, Internet, tethering (Joiku Spot), etc. For that price difference I'll suffer the imperfections, and won't be tempted to spend even more cash on Apps.

KeplerNiko said on Tue, 09 Jun 2009

Why does it cost so much to get Internet access via the iPhone (or any other mobile)? Why do people get charged if they have "excessive usage" even on unlimited plans? Such a concept is ridiculous and simply frustrating to the people who would actually take serious interest in using these capabilities.

Of course, the simple answer is that it's profitable, and cell phone providers can get away with it. The reassuring fact is that we seem to be moving slowly in the direction of more and more usage for cheaper and cheaper prices--eventually somebody will go all-in and offer the plans that consumers truly want.

rip off apple said on Tue, 09 Jun 2009

yes it all in the name

email o2 said on Tue, 09 Jun 2009

Considering as O2/iphone users we are paying for unlimited data we should be allowed to then use that as we wish. I urge you to email <complaintsreviewservice@o2.co.uk> and let them know what you think.

Mark said on Tue, 09 Jun 2009

I'm rapidly going off O2, this is rampant profiteering. I used to be able to tether my old Nokia and pay per kb no I have to sign up to another expensive contract. No ****ing way.

Brian said on Tue, 09 Jun 2009

How does it cost more to display a page on the iphone than displaying it on a computer screen, they could block large data downloads, but hang on you can now download movies to your iphone, how big are they? I'm getting more and more on the side of the Jailbreaking community

Mark said on Tue, 09 Jun 2009

I'm rapidly going off O2, this is rampant profiteering. I used to be able to tether my old Nokia and pay per kb no I have to sign up to another expensive contract. No ****ing way.

Kevin said on Tue, 09 Jun 2009

It's the usual problem. The only way to make a change, is if everyone didn't renew their contracts or upgrade to the iPhone 3G(S).

But, it is the sad truth as always, people won't and O2 will win in the end.

Jaded said on Tue, 09 Jun 2009

It is very simple. On a phone there is a limit to the amount of data that you can handle. On a computer there isn't. The O2 unlimited data for the iPhone is exactly that - for the iPhone. It helps make the iPhone what it is, an amazing tool. The reason that it is included in the monthly tariffs is because O2 know that there is a limit to the amount of data that each iPhone user will use.

To expect that you can tether to that is totally unreasonable.

John Lockwood said on Tue, 09 Jun 2009

These prices are crazy in that they make tethering a waste of money. For an individual you can get a standard Vodafone datacard with 3GB allowance for the practically the same price and the Vodafone data network is vastly better.

For businesses, you can get several Vodafone datacards and shared them amongst your users as needed and save money over enabling tethering on all your iPhones and again get a better data network.

kenty said on Tue, 09 Jun 2009

for £15 a month you can get a 3G USB dongle from 3 with 5GB allowance... sounds like a better deal plus you won't be draining your iPhone's battery when surfing on your laptop over 3G

Shaun said on Tue, 09 Jun 2009

Three do the E71 on contract with tethering allowed for £20 a month, unlimited push email, unlimited skype, 1GB internet (thought they don't seem to check). The E71 is free.

Savings over an iPhone 3GS - nearly £700 over 18 months. You can buy 4 iPod Touches and tether them to the E71 using JoikuSpot with that!

Jocca said on Tue, 09 Jun 2009

I have cancelled my AT&T contract for my first generation iPhone and am now using Verizon MiFi 2200 card to get myself on the internet, with Skype for my telephone need. Surfing the internet is as fast as at home on my wi-fi network. Verizon does have a very good coverage where I am and this mobile MiFi gadget is no slouch.

zaza said on Tue, 09 Jun 2009

I blame apple. if Apple sold iphone from their stores open to all networks no contract and they would sell more because a lot of people does not want a contract.

Pj said on Tue, 09 Jun 2009

Get yourself a second-hand 3g capable phone, pop your sim card (with your unlimited data plan) out, pop it into your old phone, and bob's your uncle. Perfect for those 'occasional' tetherers.

Anon said on Wed, 10 Jun 2009

This is just another example of O2 hitting Iphone users in any way they can. For example, how is it they are able to offer unlimited roaming data to a Blackberry for £20 per month, but limited roaming data (50GB) for £50 to an Iphone.I'm more than happy to pay a reasonable cost for tethering but because they aren't, i've jailbroken my iphone solely for this purpose.

Mister P said on Thu, 11 Jun 2009

@rip off apple

How has the tethering bundle price got anything to do with Apple?

Ascylto said on Thu, 11 Jun 2009

AFAIK the tethering charge is about the same for most suppliers. Whch is more than can be said for their Phone prices.

ascylto said on Fri, 12 Jun 2009

THE FAIR WAY

Based on a 16GB iPhone G3S

Hold customer to 18 months contract BUT make a deduction for unused talk and text, say, half.

Price the phone at £145 ... the equivalent of US$ rate plus about 12% US Sales Tax.

Until Apple and o2 do this, I'll not be upgrading. After all, I get iPhone 3.0 software update free and the other features of the G3S are not that important to me.

Oogie said on Sat, 13 Jun 2009

"How has the tethering bundle price got anything to do with Apple?"

Apple could have just included tethering in the original iPhone, they also could have made it so there was no way for O2/At&T/whoever to tell if the data was being used on the phone or by a tethered laptop.

Instead they chose to impliment it in such a way that O2 can take the piss completely.

PainMan said on Sun, 14 Jun 2009

I move around the UK with my job and have my iPhone and a mobile contract with 3. The 3 connection is outstanding and is always at either 3g speed or better (HSPDA). The iPhone on O2 is terrible. Usually connect at 2g speeds and never anything like the speeds of the 3 network. I certainly won't be cancelling my £15/5gb contract to buy a £15/3gb tethering contract from O2.

I am sure that the jailbreakers will come up with a solution for you "ocassional" tetherers, but until O2's network improves, they will never see me on it

PainMan said on Sun, 14 Jun 2009

I move around the UK with my job and have my iPhone and a mobile contract with 3. The 3 connection is outstanding and is always at either 3g speed or better (HSPDA). The iPhone on O2 is terrible. Usually connect at 2g speeds and never anything like the speeds of the 3 network. I certainly won't be cancelling my £15/5gb contract to buy a £15/3gb tethering contract from O2.

I am sure that the jailbreakers will come up with a solution for you "ocassional" tetherers, but until O2's network improves, they will never see me on it

andy mackay said on Mon, 15 Jun 2009

Err is it just me but don't iPhone users get unlimited data/WiFi hot spots on their O2 contracts anyway, and they can use PDAnet or iPhone modem to tether their iPhones now so what's the diffrence. Why would you pay 15 quid a month to do something you can already do for nowt (or at least for no more than the price of you monthly payments). Obviously no one would use it to download a torrent of the Hi Def version of war and peace, with directors commentary, but a wee sly 30 mins browsing and no one will be any the wiser, most ppl who have iPhone are a wee bit more savvy than your general user anyway, and O2 like all big firms talks to the lowest common denominator IE finks we all stoopid, so I don't see anyone other that Ned Flanders taking them up on their offer, Hmm let me see £15 more or nothing more, that's a doozy of a pickle.

AngryNugget said on Mon, 15 Jun 2009

Tethering is working on my iPhone with 3.0 sw at the moment (I'm posting this that way), and not signed up to any bolt on.

Mike said on Wed, 17 Jun 2009

A complete disgrace. Any charge for this service is disgusting and extortionate, let alone £10 per month

Martin said on Thu, 18 Jun 2009

Note that "unlimited internet" from O2 for the iPhone is actually limited to 100MB/month.

Cheap Internet said on Fri, 03 Jul 2009

I jailbreak my iPhone and use my "unlimited" o2 iPhone pay n go sim to tether no extra money shelled out. Ive been doing so about 6 months without any problems, execpt when I continuosly downloaded about 3 gB over 2 days I received a text basically saying that I was not using my sim in an iPhone and that they would cut off my data service (not calls n texts) in 30 days. So I stopped tetherin for a week and calmed down after that. I've not been cut off 2 months later.

Cheapest Internet without stealing wifi said on Fri, 03 Jul 2009

Pdanet is the tether app I use (need jalibroken phone) wouldn't use a contract iPhone sim in case a big bill arrives in post but a pay n go sim the worst they (o2) can do is cut u off. If you use too much data First they send above message then if u still taking the {*$% cut off data bolt on(not phone). Anyway back to cheap Internet, o2 pay go iPhone sims come with 12 months Internet for free, and these sims can be found on amazon and eBay for about £3-5 (don't get one with £10 credit on it or internet is already active n u only get 11 nonth) when u get sim top up a tenner to active Internet (internet does not use credit at all and is only used activate sim and is still there to use for calls/texts) now u can stick it in any o2 phone/3g dongle not just iPhone. I have set up my friends n family with this on various o2/unlocked phones and dongles. Search for pay n go iPhone sim. only £3-5 for Internet for min 30days-max12 month

Cheapest Internet without stealing wifi said on Fri, 03 Jul 2009

Pdanet is the tether app I use (need jalibroken phone) wouldn't use a contract iPhone sim in case a big bill arrives in post but a pay n go sim the worst they (o2) can do is cut u off. If you use too much data First they send above message then if u still taking the {*$% cut off data bolt on(not phone). Anyway back to cheap Internet, o2 pay go iPhone sims come with 12 months Internet for free, and these sims can be found on amazon and eBay for about £3-5 (don't get one with £10 credit on it or internet is already active n u only get 11 nonth) when u get sim top up a tenner to active Internet (internet does not use credit at all and is only used activate sim and is still there to use for calls/texts) now u can stick it in any o2 phone/3g dongle not just iPhone. I have set up my friends n family with this on various o2/unlocked phones and dongles. Search for pay n go iPhone sim. only £3-5 for Internet for min 30days-max12 month

Billybob said on Sat, 04 Jul 2009

I have been using pdanet as well to tether my 2g iPhone. And it works on iPod touch, but needs wifi making it like a USB dongle.

Tin said on Mon, 06 Jul 2009

I've made my complaint to Ofcom about the contract forcing you to pay for what is effectively double charging on data. Apparently, their switchboard is lighting up with this issue - and the chap I spoke to was well versed in the problem and what to do. I suspect if this pressure is kept up the ombudsman (Otelo) get involved - which will be great for consumers. Ofcom's number in case you want it, is 020 7981 3040 or 0300 123 3333. BitterWallet have an excellent piece on why this is such a scam btw

Tin

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