O2 speaks out on iPhone 3G S upgrade row
'This would be a loss-making deal O2'
We've been following the criticism directed at O2 (and other exclusivity contract holders) regarding existing customer upgrades to the new iPhone 3G S, which has upset a great many loyal customers and avid users of Apple's handset.
It seems many of these customers are aggravated at the excessive costs of upgrading their device to the recently revealed iPhone 3G S, which is likely to cost in the region of £500 for existing users to end their current contract early and get the new, speedier handset.
In light of the criticisms, O2 has spoken out to defend its pricing scheme.
"Contract and upgrade terms for iPhone are exactly the same as contract and upgrade terms for any other O2 device," O2 general manager Steve Alder says.
"Having subsidised much - or all, depending on tariff - of the price of a customer's iPhone 3G, we simply cannot justify invalidating that contract and subsidise a second device for the same customer."
That said, O2 points out that its three tiered membership does offer some level of choice in terms of the upgrade. Platinum membership, for example, allows customers to upgrade a handset six months before their 18 month contract expires.
However, becoming a platinum user involves spending at least £80 per month, in which case the excessive upgrade costs probably don't matter to you anyway.
"Much as we understand the desire of many customers to have the latest version, this would be a loss-making deal for O2 and would be a distinct set of business terms for iPhone customers that don't apply to our other customers," Alder continues.
As annoying as it might be for loyal O2 customers, perhaps some of the blame should be directed at Apple for instigating a 12 month hardware refresh cycle on a device that's only offered on 18 month or two year contracts.
The iPhone 3G S is scheduled to go on sale on June 19 in the UK, two days after the highly anticipated 3.0 software upgrade.
