T-Mobile and Orange to get iPhone 3G

O2 "furious" as rivals plan to undercut pricing

16 July 2009 9:39 GMT / By Amy-Mae Elliott

Multiple reports are suggesting that O2's exclusive on the Apple iPhone, that dates back to November 2007, is soon to come to an end in the UK.

As O2's agreement with Apple to be the only UK operator that can sell the touchscreen phone is nearing the end of its terms, it's being reported that both Orange, who offers the iPhone in France, and T-Mobile who has it in Germany, will become Apple partners in the UK.

In what's being described as a bid to boost sales, T-Mobile and Orange are rumoured to be due to offer the older iPhone 3G model from as early as September, while O2 will hang onto the exclusive rights to sell the newer iPhone 3GS.

Mobile Today cites "sources" as saying O2 is "furious" with the news and concerned the rival operators will undercut its arguably high pricing - some potential good news for the consumer.

Meanwhile, T-Mobile has confirmed to The Register that it is in talks to offer the handset, while callers to its sales centres are being informed the same.

O2 has told Pocket-lint: "We have a multi-year successful and exclusive agreement with Apple to sell iPhone in the UK. This relationship continues", while T-Mobile has said it does not comment on speculation, despite, if the reports are to be believed, starting it.

We will keep you posted.

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Comments

  • Brilliant! I love a bit of competition in the market!!! Posted by Maroon, United Kingdom
  • I will love it if this is true and the other companies offer a cheaper contract in a bid to lure away those customers O2 upset by refusing early upgrades to the 3GS :D

    Not that I'll switch or am even bothered about moving from 3G to 3GS, I just don't like O2... lol
    Posted by JJ, United Kingdom
  • Hopefully Apple have seen the error of their ways, a short sighted exclusive deal may give them better margins, however prevents the mass market buying from the apps & Itunes store! Console developers (eg MS) were prepared to take a hit on their kit because they realise the money is in the content! Take a leaf out of their book! O2 need stop trying to become the SKY of the mobile world and start winning customers using good deals, not through a monopoly! A bit off subject here but is it just me or is apple basically admitting their 3GS is no better than the 3g to most ppl by restricting the 3G to 8gb? (worried that higher capacity versions will effect sales) Posted by NC, UK
  • This might push O2 to reduce the upgrade price for the 3GS as they'll try and lock people in for another 18 months rather than lose them to a rival? Posted by mimeArtist, UK
  • This couldn't come at a better time for me. I'm an O2 customer and due for a phone upgrade next month. Even if these rumours eventually turn out to be untrue, I think I should be able to use them as a lever in my 'discussions' with their retentions department. If I judge the timing correctly then iPhone here I come... Posted by wingenet, UK
  • The O2 and Apple iPhone combination is a complete and utter rip off anyway. Great news for the consumer, competition at last. Posted by Paul Cole, England
  • I think most of you maybe mistaken:
    JJ - there was an option for an early upgrade - just [ay off the contract. Just cos they did it will the 2g to 3g does not mean you are entitled to it everytime. People don't expect it from SonyEricsson or Nokia, so why should Apple be any different

    mimeArtist: "try and lock you into another 18 month" - incase your cave don't have a phone store near by - Networks have not stocked 12 month plans for some time.

    wingenet: sorry to piss on your chips but you may need to hang on that bit longer - as it is yet confirmed and the deal with Apple will prob commence from November

    Paul Cole: at what point is the combination of O2 and Apple a rip off???? Things are only worth what people are prepared to pay. Take DVD's for example - if they had remained at £29.99 like when they first come out they would never of replaced VHS, it was only when the priced changed did the change happen. This has certainly not been the case with the O2 and Apple within the UK. The power of the people indicate if the price is right and with queues out the door and a handset that has broken record after record for number of users - it seems the public have voted for the combination of O2 and Apple

    Sorry people but I got the 2G and the free upgrade to the 3G - a bit disappointed with not having the same offer when it come to the 3GS but cutting 9 months off an 18 month agreement at £45 per month was good enough for me (£405 saved) - with this saving it worked out I could of paid off the contract period left to get the 3GS. Thats 3 iPhones in under 2 years and my coverage is miles better than when I was with orange or virgin (which use T-Mob masts)
    Apple went with O2 for the reason that coverage and customer service far out weighed other networks.
    I realise that not everyone is happy with this partnership but thats life.... either you want the best or you want half a job package
    Posted by DJno5, UK
  • Ive been using the 3g with a turbosim for ages on Orange, It would be nice to use one thats upgradable by Orange and that would support two lines, as Orange are the only network to offer two separate lines on one handset the iPhone does not allow me to access my second line which is annoying.

    Apple went with O2 in the UK because they bid the highest. They went with different networks in each country whoever paid for the exclusive rights...
    O2 has terrible coverage in central London, that's why we moved our entire office over to Orange.
    Posted by DCSE11, United Kingdom
  • I totally agree with DJno5. I also got both the original and the 3G and was annoyed at not getting the chance to get a subsidised 3G S upgrade, but understand why as a company they won't do it. But on the flip side I welcome the competition. If nothing else it give one leverage when negotiating an upgrade with O2 (even if honestly I have no intention of ever using T-Mobile again) Posted by Londonite, UK
  • @DJno5: I think maybe you should get off your high horse...

    http://www.guardian.co.uk/business/2009/sep/06/telecoms-iphone

    If this is the case, then I think pricing (perhaps not just in the UK) is a serious issue for most people. There are always going to be hardcore fans queuing for these kinds of releases, but that is no indication of widespread contentment at extortion, which I think the Guardian article alludes to.

    I am almost certain that if the prices were dropped, a lot more consumers would make the move to the iPhone, in turn bringing in greater profit than that seen now.

    Unfortunately I think the ridiculous handset/contract costs are just a result of Apple's fees to operators, and that is unlikely to ever change.
    Posted by Hosh, UK
  • i use to be on tmobile but when i herd about the merge i soon left as i dont like orange since then i have gone to 02 and i am going to stay with them for a very long time at lot of my mates have left tmobile and gone to 02 as tmobile keeps asking my mates why are you leaving and thay all spooken to them about the merge and that thay are not happy with it as customer service keep saying thay dont know what is going to happon as i think thay do but just not telling coustomers about it i have been to a tmobile shop to find out about the merge and thay do not know but ithink thay do and only way i can think of it is try and sell a lot more contracts and get commison and also try and get rid of there pay as you go phones before the merge. Posted by graham , england
  • paul cole i think i have to diagree with you i carnt see orange giving out free wifi like what 02 has done thay have done a deal with the clude and btopen zone so you can get free wifi and also unlimmted internet with 02 and i dont think you are going to get that from orange as i read with there unlimmted internet it 50meg limte and i also think thet if thay do unlimted internet for the iphone you have to pay extra for that service at leasty you know with 02 its included in the price with 02 as my bill was £44.04 and is what i have to pay which is verry good for my iphone and i also think that is not alot of money every month and its also comes with 1200 mins a mouth with 500 texes and i carnt see orange doing that kind of deal as i think orange cusomer service is not all that good i use to have them about four years ago i just did not like the coustomer service from orange and i find quit exspencve for there phones. i just have to say one think is well done to 02 for bring unlimted internet for the iphone Posted by graham , england

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