The UK iPhone: O2's Costly Investment
The impending launch of the iPhone in Great Britain has had many paying rapt attention to see which mobile network would support the device. With the launch date set for tomorrow, it appears no one was paying closer attention than the carriers themselves.
A full two months ago, the BBC cited early reports that Apple's choice of carrier for its iPhone was O2. Owned by Spain's Telefonica, the company reportedly edged out its competitors by agreeing to hand over the largest proportion of customer-derived revenue - as much as 40%. The remainder is to be divided between O2 and its exclusive retailer Carphone Warehouse, which not only gets a commission but also its own revenue share.
More expenses will yet be incurred when Apple installs the EDGE technology required by the device.
But according to The Guardian, the deal was "last minute."
Apple reportedly had each of the UK's major carriers - O2, T-Mobile, Orange, and Vodafone - believing at some stage that they had secured an exclusive deal with the Cupertino company for operations in France and Germany as well as the UK. But it appears now that the companies will be dealing with Apple on a smaller scale, with T-Mobile concentrating on Germany, and Orange on France.
The question is obvious: With such a high percentage of revenues being turned over to Apple, can O2 make a worthy return?
All plans include visual voice mail, unlimited access at any of the 7,500 wi-fi hotspots affiliated with The Cloud, and unlimited data (subject, of course, to fair use policies.) The base level tariff is £35 for 200 minutes of airtime and 200 SMS text messages; the mid-range offering is £45 for 600 minutes and 500 text messages; and the premium plan goes for £55 and gets 1200 minutes and 500 SMS text messages.
The vaunted phone will go on sale in the UK on November 9th through Apple's retail and online facilities, as well as through O2 and Carphone Warehouse. The 8 GB model will be available for £269 (including VAT.)