iPhone competition disappointing as Oranges takes on O2

Tuesday, 03 November 2009 06:00

Orange has today announced it will sell the iPhone from November 10th.

However, the mobile phone operator has been criticised for keeping its prices too close to those of O2, currently the only firm to sell the iPhone in the UK.

Orange will sell the phone through its own stores and online as well as through Carphone Warehouse and Phones4U.

The cost of the handsets depends on the model and particular tariff being signed up to.

Orange is offering the 8GB iPhone free on its £29.36 monthly traffic with 150 minutes and 250 texts for a 24 month contract.

This compares to O2 offering it free for the £34.26 a month tariff with 600 minutes and 500 texts on a 24 month contract.

Both also offer more expensive monthly contracts, with Orange and 02 offering a free 8GB iPhone and with 1,200 minutes and 500 texts for £44.04 and £44 respectively.

The 32GB iPhone is free on Orange's £73.40 a month 3,000 minute deal and on O2's £73.41 3,000 minutes contract.

The matching of prices has led to criticism of Orange for failing to shake-up the market.

James Parker, mobiles manager at moneysupermarket.com said: "The tariffs announced by Orange are generally the same as O2s.

"For first time iPhone customers looking to switch there is nothing between the two operators, but existing Orange or O2 customers may have some luck in negotiating an upgrade to one of the iPhone tariffs.

He added: "The only discernable differences are that Orange offers customers a lower cost entry level tariff at £29.36 a month for 150 minutes and 250 texts on a 24 month contract, and Orange impose a fair usage limit of 750MB a month whereas O2 have no set limit."

However, the new year sees Vodafone starting to sell the iPhone.

"The lack of competition between Orange and O2 will disappoint many, but there is still the prospect of Vodafone offering the iPhone in the new year which may really get the competition going," Mr Parker said.

iPhone tariffs on O2 and Orange

Source: moneysupermarket.com 02/11/2009

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