Feeds

O2 set to ditch handset upgrade lock-in

Subsidy cuts

Application security programs and practises

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. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Rural mobile coverage: Tweeting twits to join chirping tits in UK's national parks
Yup, someone IS gabbering behind you on the hiking trail
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.