iPhone contracts and purchase a brand new one when the iPhone 3G S is released.

O2 really aren’t going to make a lot of friends with this move. It seems apparent to me that O2 consider the iPhone 3G S a minor upgrade in terms of features which is a really dangerous position to be in. Either that or we can expect this trend to continue when a new iPhone with significant improvements is released in the future.

Having just spoken to o2 i have 3 options with regards to getting my hands on a iPhone 3G S. Considering i renewed my contract on the iPhone 3G release date. There is no free upgrade as everyone knows.

- Purchase the iPhone on Pay as You Go which is £440.40

- Buy out your existing contract which for me would cost £315 (7 months) and then the subsequent new phone price of £96.98. This would be a total of £411.98

- Or wait 4 months which then i would be entitled to o2’s 3 month early upgrade which would just cost the price of the new handset under their current contract deals. £96.98

As you can see o2 have us over a barrel with being the only provider of the iPhone in the UK. Seems to me that the best option would probably be Pay as You Go. Yeah it’ll cost £30 more but save the hassle of canceling.