O2 to Launch Pay-As-You-Go iPhone Service in Britain

2:19 am on September 2, 2008 | Category: Cell Phones, Mobile Devices, Telecom Services, Wireless

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O2, Apple’s exclusive iPhone partner in the United Kingdom, has announced plans to launch a pay-as-you-go plan for customers seeking to buy the popular multimedia smartphone.

Beginning September 16, British users can pay £349.99 for an 8GB iPhone (or £399.99 for the 16GB model), which comes with unlimited wireless web browsing for the first year. This makes it possible to purchase an iPhone without signing a costly (£45+ per month) 18-month contract, which O2 previously required. Under the pay-as-you-go plan, customers can keep an iPhone active by simply topping it up with as little as £10 each month.

“This is huge. I think we’ll see people queuing up outside the stores for it. People are increasingly nervous about locking themselves into long term commitments especially in the light of the current economic downturn,” commented CCS Insight technology analyst, Ben Wood. “The iPhone’s long contract length and expensive monthly contract charges have deterred a vast swathe of UK subscribers from buying one – that has all changed now,” he said, predicting that the device will become a “must-have” over the Christmas shopping season.

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