AfterDawn: News

O2 deal for iPhone exclusivity in UK is terrible

Although it was confirmed that O2 has won exclusive rights in the UK for the iPhone, the details of the deal were never divulged, until yesterday.

According to The Guardian, Apple is set to take up to 40 percent of all revenue generated by O2 customers using the iPhone.

"I can't imagine any of the operators agreeing to terms like that," said one UK telecom official. "It is an extraordinary number."



Recent stats have come to light that state that in the US, Apple receives anywhere from $3 to $11 USD per month from AT&T for each iPhone customer.

To make matters worse, iPhone unlocking software is now readily available, making exclusivity packages obsolete in most cases.

Heres hoping O2 makes any money off this recent pact with Apple when the iPhone begins selling the UK soon.

Source:
Dailytech

Written by: Andre Yoskowitz @ 18 Sep 2007 8:40

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• 9 comments

• nobrainer

  from how the announcement reads you also have to sign up to an 18 month o2 contract. so yes this is a bad deal.
  
  http://news.bbc.co.uk/1/hi/business/7000370.stm
  
  
  Originally posted by bbc link: Customers have to sign up for an 18-month contract on a tariff of £35, £45 or £55 a month, all of which will include unlimited mobile data usage.if you get the phone unlocked will you still be able to use the online facilities seems o2 are going to utilise the Edge network that has less than 30% coverage in the uk, unlike 3g that has over 80%. I'm sure the iPhone will have some sort of auto update drm inbuilt to keep it on o2 only though, because of the one network deal.
  
  i also read somwhere that the iPhone would require activation via iTunes but cannot find the link!
  
  http://www.engadget.com/2007/09/18/live-...vent-in-london/
  Originally posted by link: 10:26 - Q: Is unlocking a concern?
  
  Steve: "It's a constant cat and mouse game -- we have the same thing with the iPod with music." Steve looks at Matthew, "Are we the cat or mouse?" 'We have to stay one step ahead of them."
  
  
  10:37 - Q: £900 for 18 months on up to £1260. Any assurance you won't slash the price by 1/3rd? (Laughter.)
  
  Steve: "I don't think that's going to happen. But this is technology so you never know. We have no plans to change the pricing, but we guarantee it will change in the future just like all technology products. We're working on the next iPhone and the next one after that. That's what our customers expect."
  

  Track What Companies Have Edited Wiki http://wikiscanner.virgil.gr/ (very heavy load atm)

  18.9.2007 09:12 #1

• LaBaMaN

  omg

  19.9.2007 12:10 #2

• ktulu14

  Why anyone would want to get this phone is beyond me. I personally use the 3 network here in the UK, £15/month and fine for what i need a phone for. No doubt some foolish people will rush out to get it just so they can say "I have an iPhone". They need to get a life if they are that sad.
  

  
  
  Free the West Memphis 3 --- http://www.wm3.org

  20.9.2007 10:51 #3

• nobrainer

  Originally posted by ktulu14: Why anyone would want to get this phone is beyond me. I personally use the 3 network here in the UK, £15/month and fine for what i need a phone for. No doubt some foolish people will rush out to get it just so they can say "I have an iPhone". They need to get a life if they are that sad.the phone is awsome and blows away all competition but the o2 deal sucks, then you are stuck on the EDGE network not 3g, so you only have 30% coverage in the uk compared to over 80% with 3g.
  

  Track What Companies Have Edited Wiki http://wikiscanner.virgil.gr/ (very heavy load atm)

  20.9.2007 11:24 #4

• ktulu14

  In your opinion the phone blows away all the competition. IMHO, I am not going to spend over £200 on a phone then have to pay upwards of £50 a/m on a contract. For me a phone is for phoning and texting. If I want to listen to music I can do on my phone but rarely, if ever, do because I have an MP3 compatible radio/CD in the car. If I want to access the net I prefer to use a PC rather than gaze endlessly at a very small screen.
  
  I don't think if it was even free I would consider it, I cannot justify spending so much on a contract. My current Deal with 3 is £15/m with 75mins and 600 txts. I have yet to use up the full allowance in any month, so why would I want to get a phone that can make toast when I have a toaster?
  

  
  
  Free the West Memphis 3 --- http://www.wm3.org

  20.9.2007 11:34 #5

• Wild9

  Another lousy rip-off. Not surprising for people in the UK..they are used to it.

  21.9.2007 07:34 #6

• whatname

  pretty pointless, if hackers have already worked out how to unlock the phone.

  21.9.2007 10:05 #7

• plazma247

  Actually nobrainer O2 now tries to make all renewed contract 18 months instead of 12.
  
  They tried it on me last year i just refused to and told them they either offered me the same deal on 12 months or they could give me my PAC code.
  
  Thing is a phone never last me 18 months, normally the battery is failing by month 11 and the case has either broken or badly warn due to the drops and knocks i give them.
  
  Mind they they appear full of naughty tactics this last year, since they got told they were no longer allowed to charge such high rates for international calling they just send a text out to all customers telling them 0845 and 0645 local rate numbers would no not be charged as part of free mins and would be 15p or something instead.
  
  So they just made it back up out of the customer some place else.

  22.9.2007 05:37 #8

• borhan9

  Exclusiveness is out the window they have to realise that tele companies can not control competition.

  24.9.2007 14:54 #9