The beginning of the end: O2 drops unlimited smartphone data tariffs for iPhone 4 launch date

Thu 10 Jun 2010 1 Comment

Mobile provider O2 has today announced a new pricing model for data usage on smartphones which it calls 'generous and clear'; but which has been seen by many as signalling the end of unlimited data tariffs for smartphone users.

The new pricing will be tied more closely to usage, the company said, claiming that the lowest data bundle, at 500MB, provides at least two and half times more data than the average O2 customer needs. However, what that really translates to is 'if you don't use much, you won't pay much'. Of course, the flip side of that coin, which O2 is less keen to point out, is 'if you use more, you pay more'.  The company claims that the changes will only affect a smallish number of customers who use exceptionally high amounts of data per month.

The new data tariffs will be introduced on June 24 - coincidentally the same date that the iPhone 4 launches in the UK - and bring an end to the 'unlimited' data tariffs which went with the launch of the original iPhone on O2 in 2007. From later this month there will be a tiered system in place which allows users 500MB, 750MB or 1GB per month, depending on which tariff they're on. However the unlimited Wi-Fi via The Cloud and BT Openzone will still be available.

The changes affect 'new and upgrading' customers, meaning that anyone with an existing smartphone contract will be unaffected until their contract expires. Meanwhile anyone signing up for a new contract or upgrading an old one will be offered unlimited data until 1st October, after which time they will be able to purchase additional data Bolt Ons if required. Customers will also be able to monitor their usage via O2's website, and the company will send regular text updates on usage.

With smartphone data usage spiralling out of control to some extent, the removal of flat-rate data tariffs is a change that everyone has been expecting; and O2 is blazing a trail that all other providers will surely soon follow, in order to stay on top of network capacity and maintain profitability.

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Comments

  • unhappy

    by Carl Barron at 19:48 on 10 Jun 2010Report abuse

    UK’s Tele Coms not keeping pace with demand

    I appreciate that O2 is at least being honest informing its customers. Yet this does not get away from the fact that the telecommunications Companies in the UK are not keeping pace with the huge increased demand for legitimate downloaded products.

    Meanwhile the OFT Office of Fair Trading should halt the miss selling of Broadband by many ISP's falsely stating unlimited usage when in fact they are not. Businesses are being affected by the restrictions placed on ‘Legitimate Downloads’ of both music and Movies due to low Gig caps. All this at time when new products, which keep markets flowing, are being seriously affected.

    Meantime the UK Government is seeking to criminalize all Net users to gain revenue by the introduction of new Laws.

    Signed Carl Barron Chairman of agpcuk

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