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Home >> Voice, Data, and IP >> Carriers and Service Providers

European carriers mum on iPhone pricing

European carriers mum on iPhone pricing

By:  Jonny Evans  On: 10 Jun 2008 For: IDG News Service (hs) Creator

The newest version of the iPhone will go on sale July 11 in many European countries, but so far only one has detailed the price of its plans. A financial analyst believes Apple is being forced to change its pricing scheme

STOCKHOLM - The 3G (third-generation) iPhone starts at $199 in the U.S., but what it will cost in European and African countries still remains a mystery. Except for Britain’s O2, operators are keeping quiet about details.

Vodafone, TeliaSonera, Swisscom, Orange, O2, T-Mobile and Telecom Italia will all start selling the new version of the iPhone on July 11.

In the U.K., O2 will give an 8 Gigabyte iPhone for free to customers who sign up for an 18-month plan. That plan comes in two hefty monthly rates: £45 (US$90) and £75 a month.

If you prefer a lower tariff, O2 offers £30 and £35-a-month plans, but the iPhone will cost £99. Still, that's a lot cheaper than the £269 O2 was charging as few as three months ago for the 8 G-byte model. And it's approximately close to what the iPhone costs in the U.S.

But hidden in the small print on the O2 Web page, the company confirms iPhone users will enjoy free use of Wi-Fi hotspots from its existing partner, The Cloud, and also as well as hotspots provided by BT OpenZone. This raises the number of Wi-Fi hotspots available to U.K. users to 9,500, with the O2 note mentioning that all these hotspots will be made available for use from 11 July.

The main differences between all of the O2 rates are the number of voice minutes and text messages; all tariffs include unlimited Web browsing over the 3G network and free Wi-Fi, thanks to agreements O2 has with Wi-Fi providers.

Ben Wood, analyst at CCS Insight, is convinced that the £35-a-month plan will become the most popular one. It's the sweet spot in the U.K. market, and most customers will figure out that the £99 cost of the phone will be paid off before the contract is over, according to Wood.

If you were an earlier adopter of the iPhone, O2 will show you no love. O2 will upgrade to the new model for free for customers already on the £45 and £75-a-month plans. But those on £30 and £35 tariffs will still have to pay £99.

Essentially, there's no difference between being a new iPhone customer and an existing one with O2 as far as price. However, existing iPhone subscribers will be able to get their upgrade on July 11 when the product launches, O2 said.

Vodafone and Telecom Italia will offer both prepay and contract price plans, according to statements. O2 has also added a prepay option, but is not providing more detail. Vodafone will include what it calls "value" data bundles when it starts selling the phone in Australia, Italy, New Zealand and Portugal on July 11. Full details will be made available soon, as well as information about other countries, including Czech Republic, Egypt, Greece, India, South Africa and Turkey.

Swisscom, T-Mobile and TeliaSonera will wait for the launch to provide more details, according to statements. T-Mobile will first introduce the 3G iPhone in Germany, Austria and Netherlands on July 11, with others to follow, according to a statement.


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Jonny Evans Jonny Evans is a contributor to the International Data Group (IDG) News Service, which publishes global technology stories from bureaus around the world to more than 300 publications in more than 60 countries.

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