Apple iPhone 3GS: O2 customers express anger over upgrade costs

Disgruntled customers have been flooding web forums and Twitter with complaints about the fact that they will have to pay for the remaining time on their existing O2 iPhone contract if they want to upgrade to the new Apple iPhone 3GS handset, plus pay full price for the device itself.

Many consumers had expected O2 to offer a similar deal to the one it ran after the iPhone 3G was announced last July, which allowed first-generation iPhone users to get the second-generation device at a reduced fee if they signed up to another 18-month contract with O2, which has the exclusive rights to the iPhone in the UK.

However, O2 has confirmed that customers will need to buy out their current contract before switching to the iPhone 3GS, a faster version of the iPhone with new features, such as Voice Commands, which was unveiled at Apple’s WWDC conference in San Francisco.

The hashtag “O2fail” is one of the hottest trending topics on Twitter, with O2 customers furious at the perceived slight.

“£300 to terminate my old iPhone contract and get a new one. No thanks at all for being an existing customer,” wrote thedotnetfox.

“I have been shafted. Buying the handset outright is cheaper than upgrading my contract,” tweeted JohnONolan.

“Why on earth would ANYONE who loves their technology sign up to a long contract with o2 again?” asked dressjunkie.

Two other Twitter users published the contact details of senior O2 officials on the website, calling on O2 users to protest about the upgrade situation.

On O2’s own forum, one user started a petition, while another wrote an open letter to the network operator.

“I know you are a business, here only to make a profit. I get that, I honestly do,” wrote Bluemoonin65. “But can I suggest that before the end of Wednesday careful consideration be given to the following points – you are in a long term business where keeping customers loyal and happy is increasingly important.

“You gave new adopters no choice but to agree to an 18 month contract on a phone that would be replaced within 12 months… Holding existing customers to the letter of the contract may turn a fast buck, but will kill brand loyalty.

“Maybe, just maybe, the loyalty of these users is worth some consideration.”

British iPhone users have also been stung by the news that they will have to pay an extra £14.68 per month if they want to use the new tethering functionality that comes as part of the iPhone 3.0 software update, which enables users to connect their iPhone to their computer to access the internet over the 3G network.

O2 has not responded directly to customer criticisms over the upgrade situation, but on the company’s Twitter stream, it repeatedly made clear that users would have to pay to break their contract and switch to the iPhone 3GS.

Apple’s new iPhone goes on sale on June 19 in the UK. Consumers will have to pay as much as £184.98 for the 16GB model on the entry-level 18-month contract, or as much as £274.23 for the 32GB version. The 8GB iPhone 3G handset is available for free on some tariffs, or the reduced price of £96.89 on the most basic 18-month contract. (Via Telegraph)

4 thoughts on “Apple iPhone 3GS: O2 customers express anger over upgrade costs

  1. Barry

    I’m waiting for the PandG prices. Depending on how long is left on a contract, it may be cheaper to get that and then sell on the older phone.

  2. Chris Marshall Post author

    That makes a lot od sense. Will probably do the same, especially as will be a long wait for it to reach us here in Spain if the 3G is anything to go by!!

  3. gara

    O2 customer woes – here in the states looks like we’re having AT&T customer woes:

    http://latimesblogs.latimes.com/technology/2009/06/att-iphone-3gs.html

    http://arstechnica.com/apple/news/2009/06/att-on-tethering-iphone-3g-s-pre-orders-early-upgrades.ars

    Looks to me like issues for customers are the fault of BOTH the service provider and APPLE. They need to get their act together for new customers but especially for all of us LOYAL APPLEs out here who remain “close to the tree”!!!!

  4. Chris Marshall Post author

    Have always said Apple made a huge mistake going with phone companies. Would have gone handset only …… and let all the carriers buy in bulk and sell with contracts if they wanted to.

Leave a Reply

Your email address will not be published. Required fields are marked *