O2 reduces iPhone tariffs to step up competition

O2 is stepping up its competition in the iPhone market, with the launch of a new sim-only contract.

iPhone

The network, which lost its exclusivity on the iPhone late last year, is looking to compete with rivals Orange, Vodafone and Tesco Mobile, who have all launched competitive tariffs for the Apple smartphone.

Under the deal, customers who already have an iPhone can choose from a range of sim only tariffs starting at £15 per month for 300 minutes, unlimited UK texts, data & Wi-Fi on a 12-month sim only contract, or from £20 per month on a 30-day rolling contract. Unlimited UK calls, texts and data are also available from £45 a month.

O2 says that iPhone customers who want to use their iPhone as a modem can do so and not pay more than £2 per day with O2’s newest Internet Tethering Bolt On.

Similar tariffs will also be available for non-smartphone users or users with other smartphones.

Sally Cowdry, O2 marketing director, says: “Customers’ habits are changing, with more texts being sent and data being used than ever before. We have listened to our customers and introduced a range of new tariffs with unlimited calls, texts and data offering real value for money.”

“We have also introduced a new £2 per day Internet Tethering Bolt On as we know our iPhone customers want to snack when they are using their iPhone as a modem. We have always been the home for texts and now want to extend that to being home for data.”

Apple’s profits jumped from $2.26bn to $3.38bn (£1.39bn-£2.08bn) in Q4 2009, boosted by a 100% increase in iPhone sales over the period.

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