Feeds

O2 set to ditch handset upgrade lock-in

Subsidy cuts

Security for virtualized datacentres

UK telecommunications operator O2 will aim to break the mobile phone handset upgrade cycle with a new selection of tariffs that will be cheaper than the pay-as-you-talk and monthly contract offerings currently available.

A source familiar with the new O2 Simplicity range, which will be announced next week, said they will cut costs by scrapping the upgrade subsidy that is factored in to the cost of a standard monthly plan. Over the course of an 18-month contract, consumers and small businesses on an average £40 per month package will save £180, the insider said.

Orange has been quietly running a similar deal with sim-only packages available on its website.

O2 reckons Simplicity will attract business from the one third of mobile users who don't take the "free" handset upgrades offered by operators in an attempt to retain customers. They'll also be pitched as a good choice for environmentally-aware users concerned about the mountains of e-waste built up by regular upgrades.

The contracts, from a UK operator to emphasise users are not subsiding handsets, will run a rolling 30-day contract, rather than tying punters into the "contract creep" which has seen 18-month periods become standard. Users will need to supply the handset themselves, however.

The "free" handset upgrade cycle has been a fixture in the mobile phone business. O2's move is a sign of operators thinking differently to retain their voice and text revenue base as mobile VoIP takes off. ®

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.