9/4/2008 11:21:00 AM
O2 faces battle with box breakers with launch of prepay iPhone
O2 is likely to face a new round of box breaking when it launches the 3G iPhone on prepay on 16 September.
The device will be priced at £350 for the 8GB version and £400 for 16GB.
The 16GB iPhone is currently available on eBay for around £560, and O2’s price is approximately £80 cheaper than the recent trading prices, which were around £430 for 8GB and £480 for 16GB. The potential arbitrage between the prepay and trading prices has already registered interest from potential box breakers.
O2 is using the promise of 12 months’ free internet browsing over 3G, free Wi-Fi, and other bolt-ons to ward off breakers.
A spokeswoman for O2 said: ‘We will monitor the situation regarding box breaking very carefully and take appropriate action against any breaches of our code of conduct in this area.’