O2 fights Vodafone with cheaper iPhone rates

O2 UK countered Vodafone's recent SIM-only plan with one of its own just for iPhone users. The monthly "simplicity for iPhone" plans at £15 for a 1-year contract or £20 contract-free give those who already have an iPhone a much less expensive alternative to using the device without sacrificing features. At the base level, these provide 300 minutes, unlimited data, UK texting and Wi-Fi with tethering an option at either £2 maximum per day or a flat £10 per month for 3GB of use.

Plans scale up in £5 increments with blocks of 300 additional minutes and peak at a £45 contract or £50 off-contract plan that provides unlimited domestic voice.

Regular rates for subsidized iPhones haven't changed and start higher £25 for a two-year plan with just 100 minutes each month.

Similar SIM-only plans are available for other smartphone users, and those with conventional phones can pay just £10 per month contract-free, although without unlimited data and only 100 minutes. Those who need data can pay either £1 per day or graft on an unlimited data plan (£10 per month extra) as well as a BlackBerry-specific data plan (£12.50). Unlimited voice service starts at £40.

Further tackling the budget audience, O2 has launched a cheaper 1GB mobile data plan for 3G modems. The £10 plan is also contract-free and adds only £20 to buy the USB modem itself. Those who volunteer for a 1.5-year contract can get the modem for free as well as free service for the first three months. Running over the transfer cap costs 2.4 pence for each megabyte.

The additions are likely to help spike iPhone sales in the UK, which like most European countries often prefers to get phones contract-free or unlocked and then to use them with a SIM they already have. Contracts in the region often give phones for free, which is true for some iPhone models but not as common as it is for rivals' devices.

By Electronista Staff