O2 has confirmed it will be allowing customers to unlock their iPhones to work on different networks after they have served their full contract term.

On the 2-year anniversary of the iPhone going on sale in the UK, O2 has confirmed the news to Pocket-lint and says that iPhone customers wishing to leave O2 have to call customer services and ask them to unlock their iPhone.

Pay monthly customers who are not at the end of their contract will be required to honour it or pay up until its end.

iPhone Pay & Go customers who have had their iPhone for more than 12 months are entitled to unlock their devices too, but for a fee of £14.97.

The news was initially revealed by none other than Matthew Key, the chairman and chief executive officer of O2 parent company, Telefonica Europe in a Q&A article in The Times.

In answer to the question: "Is there any truth in the rumour that after Orange and Vodafone are able to sell the iPhone you will not allow people to unlock their iPhone, even if they are out of their contract period?" Key states:

"There is absolutely no truth in that rumour. Once the iPhone becomes available on other UK networks, we will allow O2 customers to unlock their iPhones, although of course they will still need to honour any outstanding contract period they have. At the end of their contract period, they are entirely free to move to another operator - though naturally we hope they won't want to!"

Nb. This post has been amended to correct the error that stated pay monthly customers would also have to pay the £14.97.