O2 hikes high-end phone prices

O2 has dramatically hiked the price of high-end handsets.

The likes of Nokia's N95, Sony Ericsson's C902 and Samsung's Tocco handsets are now only available for 'free' on £75 contracts.

Previously, they were available on £35 per month deals. 

The move is the first by a UK network operator to slash handset subsidies. But, so far, the handsets remain on lower value monthly contracts via other networks.

The 8GB Nokia N95 is available on £35 deals from Vodafone and £50 contracts from T-Mobile. The Sony Ericsson C902 is free on £30 priceplans from Orange and Vodafone.

Carphone Warehouse offers it for free on O2 and T-Mobile contracts of £25 per month and over, and T-Mobile stores offer it free on £35 per month deals.

It is available from 3 on £22 per month tariffs.