Amazon launches O2 contract sales and starts undercutting network partner


Amazon offering enhanced deals on O2 contracts after it starts selling operator’s airtime

Amazon has entered the mobile phone contract arena and has immediately started undercutting its network partner, O2.

More than 90 handsets, including Amazon’s Fire Phone, HTC One (M8), Huawei P7 and the Lumia 735, are available on 3G and 4G tariffs beginning from £13 per month. Amazon currently sells more than 480 handsets but will not be offering O2 Refresh plans.

However, some handsets are actually being sold at better prices on contracts through Amazon’s site, rather than O2’s.

For example, a HTC One (M8) with unlimited calls, texts and 2GB 4G data is available for £33 per month, with no upfront cost, through the Amazon website.The same tariff is £5 per month extra when purchased through O2. For the same monthly cost, a customer purchasing through O2 would get 500 minutes and 500MB of data.

The 32GB model of Amazon’s own Fire Phone on the same tariff is is available for £33 per month through Amazon and O2. However, customers can get the phone with unlimited calls, texts data and 1GB of data (no upfront cost) for £28 per month through Amazon, yet for the same monthly price through O2, customers would get just 500 mins and 500MB of data and have to pay £39.99 for the handset.

“We’ve taken our years of experience selling mobile phones on to make it as fast and easy as possible for customers to purchase a new pay monthly phone or upgrade an existing contract,” said Amazon vice president of EU retail Xavier Garambois. “We’re focused on helping customers choose the right phone, at the right price, with fast delivery and are celebrating the launch with a host of great value deals.”