Pay-as-you-go iPhone will cost £349

The 3G iPhone will be available to pay-as-you-go customers from September 16, with the 8GB model costing £349.99 and the 16GB model £50 more. The price will include unlimited web browsing (subject to fair use policies) for the first year, according to details posted on O2’s website.

That’s a big upfront fee given that the new iPhone can be had for £99 on £30-per-month contracts, especially as pay-as-you-go charges will soon mount up. The first three minutes of calls per day will cost 25p each, meaning that anyone spending at least three minutes per day on the phone will spend 75p per day, or £22.50 per month, saving only £7.50 per month compared with someone on a £30 contract.

At that rate, it would be 34 months before the pay-as-you-go customer started to save money, and by then he or she would be paying for any web use (and will have been paying 10p for each text message sent throughout).

So the PAYG iPhone is only really going to appeal to very light users, or those who struggle to pass the credit checks needed for a contract phone.

Comments

[Timo Fjordson]

It is still a phone with many faults and not very user friendly, is this a new way to get rid of them?

[Scott Salter]

I think this is pretty expensive for a phone which won't let you record video, only has a 2MP Camera, won't let you send picture/video messages through MMS, and (apparently) the Bluetooth feature on the iPhone 3G can only work with a hands-free device!!!
I'd price this iPhone 3G between £99 and £229.

[Luck]

It's worth noting the benefits for topping up on PAYG - this depends on the tarrif you choose and how much you top up each month. For instance; the standard 'Favourite Place' tariff rewards customers with 500mins to any uk landline or 02 mobile from a regisitered postcode for topping up between £10 - £14. There's tariffs to suit everyone & even unlimited calls, texts etc for large top-ups.

Also taken from the 02 website:
"Please note visual voicemail and call merging are not available with Pay & Go"

Why??

[Dan]

Or those who want a handset to use on another network (anySIM)

[Nilsey105]

its too late now i know, but why do people use mobile phones that are nothing more than a licence to print money for the operators ?

[Colin Soames]

IMHO, an iPod Touch used with 3G Nokia phone is a good combination. There's software to make the phone into a wi-fi hotspot for the Touch to use.