Understanding O2’s iPhone 3GS Pricing Policy
I’m quite amazed by the outpouring of hate towards O2, the UK iPhone network provider, following their announcements regarding the new iPhone 3G s. Chiefly that existing customers must remain in their contract or pay a cancellation fee, and that tethering will cost an extra £15 a month. Finally there is anger at the apparant increased handset cost compared to the US. There are claims that o2 is being unfair, treating it’s customers poorly and not appreciating their customers loyalty.
Cancellation Fee
This is an industry standard thing across all maj0r networks (at least in the UK). When I left orange to join o2 I paid £70 in cancellation fees to bail out early. Why? Because I agreed to pay 18 months of 35 pounds in order to offset the cost of my phone. It’s quite a simple concept, and I find it incredible that people expect that, because they own an iPhone, they should be exempt from a contract -they- signed 12 months ago (or less). They believe O2 should suck up the cost. Bizarre.
Tethering Fee
Sure, it would have been nice to have free tethering, but let’s be honest it was wishful thinking. We all know a laptop’s use of data will be considerably higher than an iPhone. Why have we been unable to purchase itunes content over the air? Or download large attachments in mail? Or large applications? Apple has limited the amount of bandwidth we use on our handset since it was first announced; it comes as no suprise therefore that we are expected to pay to be fiven free reign on bandwidth via our laptop. I’m not arguing whether the price is competitive, but it seems to be reasonable given you now have unlimited mobile data on any windows or apple laptop or deskop anywhere in the UK?
Upgrade Prices
This bit I can’t explain - incredible that o2 would just ignore apple’s lead. Interesting that @o2 hasn’t commented on this either…
What are people’s thoughts? Am I missing something important about the cancellation and tethering fee?
