O2 buckles under 3G iPhone demand
Early bird customers left out in cold
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O2 customers reported that the firm's activation system crashed this morning as they raced to get their new 3G iPhones, but the telco insists everything is going swimmingly.
One reader in West London told El Reg that the manager of his local O2 shop said the computer system for activating iPhones “has crashed, and it’s the same phone across the country. Nobody has left with an iPhone yet and the store has been open for half an hour!
Forumistas on hotukdeals reported similar problems in the Midlands and across the country.

Shiny happy phone, unhappy crowd
Another customer expressed fury that customers sat twiddling their fingers were told they could not come back and pick up their phones later as, "it's first come, first served." Apparently the store manager quickly reconsidered when confronted by a shop-full of furious O2 subscribers. Some stores let customers fill in the paperwork, and take their unactivated phones.
It appears the problem kicked in when store staff started trying to run credit checks through the stores systems. However, customers who were upgrading were also caught in the net.
”How could they not see this coming?” our West London reader asked.
How indeed, given that earlier this week, the firm texted customers to alert them to the launch and asking them to pre-order via its website – only for the website to crash.
Except, according to O2 there is no problem. No problem at all, according to a spokeswoman we tracked down, who just happened to be in the mobefirm’s Oxford Street store.
The activation system was up, and had never been down and average transactaction times were taking 20 minutes, which was perfectly normal, the spokesperson said.
“Customers are coming in and out,” the spokesperson said. Which may be at least half right. ®
Update
O2 has been back in touch, to say "The latest is that our systems are up and running but have been working slower than normal today. Transaction time is 20 minutes, which is business as usual. Everyone who queued this morning at the Oxford Street store has walked away with an iPhone 3G."
Readers have been in touch within the last hour to say they were still waiting to be processed, and that many early morning customers had left the O2 stores, either in disgust, or because they had to go to work.

Is this the queue for the credit crunch?
Image credit: francisbooth.com
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COMMENTS
More Woe Too
Failed credit check for on line purchase from O2 on Monday. Ordered from CPW. Told Out of Stock, then got an e-mail saying new stock had arrived. Delivered at 10.30 am on Friday. Follow activation instructions. Nada. Ring CPW help line. Helpful operators. Transferred to O2. "phone will be recognised by end of today". It wasn't. O2 web site now says recognition may take up to three days. It's now 2.5 hours left and counting. I ain't holding my breath. Why on earth did Apple go with O2?
More CPW woes (follow on from effing CPW II)
.. well I sauntered down to the shop today to find out they havn't done a damn thing with my noPhone so I picked up the kit and headed up home to call CPW Customer Services direct.
After a 5 minute conversation with someone who actually seemed to know what they were talking about, I was then informed I need to go back to the shop so they can transfer 'the stock' (ie the phone) to their store (from the CPW website store code) so they can close the order down! Totally opposite to what I was told in the shop and apparently the noPhone *will not* activate until the order is closed.
Roll on Monday evening, or Tuesday if I dont want to skip the gym again.
Sigh.
Interesting comments...
I pre-registered online weeks ago, I then pre-ordered at the beginning of this week with no problems shortly before the system borked.
My order was in progress until Thursday when finally at about 4.30pm I got 2 test messages from O2, one explaining the situation and telling that not all orders placed had been successful, those that were would be informed by the end of the day. The second text just ten minutes later informed me that yes my order was indeed successful and would be delivered by courier on Friday.
I had the day off work already so that wasn't going to be a problem (before I get mocked for being a fanboy I'd booked the day off because it was my birthday... And perhaps 5% because of the iPhone ;o)), DHL arrived at 8:50am and I was activated and restored from my iPod touch backup by 9.30am.
I hit the App store and downloaded a few games etc. played them until I drained the battery about 2am and let it charge to full which only took about 3 hours.
The only issue for me is MobileMe, I can log in online but not via my Mac meaning I can't yet push my email and calendar.
Overall a very positive experience for me.

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