O2 in consumer tariff overhaul


O2 is readying a complete refresh of its consumer tariffs including a new lower-priced iPhone deal and up to eight months’ free line rental on selected devices.

Mobile News understands O2 will launch a two-year Apple iPhone tariff for £25 per month. The tariff will include 100 minutes and unlimited texts. Handset costs were unavailable at press.

The iPhone is also expected to be made available with its Simplicity SIM-only tariffs for the first time, with the device available at full price.

O2 is also to drop its free ‘unlimited’ bolt-on deals, previously available on all ‘high value’ deals of £35 per month or above. O2 previously offered customers a number of unlimited offers including on-network calls, internet, landline, weekend calls, Wi-Fi or texts. All O2 tariffs will now include unlimited texts only.

O2 has also removed inclusive picture messaging as part of its text bundles, as well as international texting.

O2 will also now charge customers 10p per minute to call their voicemail if outside of their minute bundle.

Staff claim the removal of the free bolt-on will put the operator at a disadvantage, and will see it struggle to hit escalating targets. Staff highlighted BlackBerry and other data centric devices as those which will be hardest hit, as customers will be required to pay £7.50 for BlackBerry data or £5 for standard data.

The operator will be launching a number of new incentives and promotions to new customers from February 26 including up to eight months free line rental on selected tariffs and handsets.

Customers who connect to the £30 per month O2 300 tariff will receive £180 credit, equivalent to six months’ free line rental. 

All tariffs above this will also receive a £180 credit on their account, effective after their first bill.

In addition, O2 is offering customers who purchased selected devices – including the Nokia 5800, 6700 and 6303 – on a 24-month £30 contract up to £240 credit on their account, equivalent to eight months free line rental.

O2 is also expected to launch its first unlimited calls and text deal for consumers. Costs will range from £45 per month on a 12 month Simplicity deal to £65 per month on an 18 month deal.