O2 triples minutes and doubles texts for iPhone customers

O2 triples minutes and doubles texts for iPhone customers

O2 has responded to criticisms of poor value offered on the iPhone deal by tripling the amount of minutes and texts it offers with the £270 Apple handset.

£35 a month tariffs will now come with 600 minutes and 500 texts, up from 200 minutes and 200 texts. And the minutes included in a £45 per month tariff have been doubled to 1200, however the number of texts remains the same at 500. The increased offerings will be available from 1 February.

The tariff change comes after staff at O2 and especially Carphone have reported exceptionally slow sales on the iPhone despite an initial spurt when it was launched on 9 November. Staff have consistently accused O2 and Apple of ‘being greedy’ in charging £270 for the handset, and then adding such a low value tariff.

A spokesman for O2 said that there were no plans to reduce the price of iPhones.

The increase of 400 extra minutes for £35 per month tariffs - which could cost O2 as much as £1200 per customer in lost revenue – has been welcomed by analysts.

The £1200 hit has been calculated if customers were making a total of 600 on the old tariff, and are now continuing with the same usage.

Shaun Collins of CCS Insight described the change as ‘a very welcome move’. He said: ‘It makes it easier for channels to sell. The tariff was always a weak point – it will unquestionably reinvigorate sales of the iPhone.’

The changes bring the iPhone tariffs closer to packages offered by other operators in the important £35 per month sector of the market, which Collins estimates accounts for 70% of the UK contract market.

O2 confirmed that existing customers who have already signed up to an iPhone contract with will have their monthly minutes and texts increased from February, a move which should avoid the backlash faced by Apple when it cut £100 of the price of the iPod two months after it launched.

Existing customers will also be allowed to downgrade to a cheaper tariff without having to extend their original contract.

 

Written by Mobile Today
Mobile Today

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