Orange saves callers pennies with iPhone tariffs
The future's bright, the future's 11p cheaper
Orange will launch its iPhone offering on 10 November, at a price almost indistinguishable from O2's existing one.
Anyone expecting that the end of O2's monopoly would lead to some sort of price war will be disappointed to hear that Orange will be offering the top-end iPhone at exactly the same (two-year) tariff as O2, though customers will save 11 pence on the cost of the 16GB handset.
So a punter signing up for 24 months of 3GS goodness will be paying £34.36 a month regardless of which network he's using, for 600 minutes and 500 texts, though if that network is Orange then he'll only have to shell out £87 for the handset, compared to the clearly-overpriced £87.11 that O2 will charge him.
If our punter only wants to be locked in for only 18 months, with the same monthly tariff and minutes, but perhaps with a 32GB handset, then he could save as much as 23 pence by choosing Orange over O2.
Those familiar with how Apple does business won't be so surprised by the remarkable similarity between the prices, given the manufacturer's preference for uniform pricing.
There are a few marginal differences, but even the exhaustive analysis provided by MoneySupermarket.com fails to throw up any significant favourite: "For first time iPhone customers looking to switch there is nothing between the two operators", said mobile manager James Parker.
So O2's monopoly might be over, but Apple's monopoly on supply remains in place and thus its ability to set the price. James remains optimistic, noting that "there is still the prospect of Vodafone offering the iPhone in the New Year which may really get the competition going", but the more-cynical know that Vodafone's offer will be another photocopy of the prices set by Cupertino. ®
COMMENTS
@ Robert E A Harvey
"Apple's monopoly on supply remains in place"
A bit like Ford's monopoly on supplying a Mondeo?
....Err No. You can only buy a New Ford Car through a (franchised) Ford Dealership, so the RRP price is fixed, but the dealers still compete on price (I got £7K off an S-MAX) and Ford does not stop supply because they choose to lower their margins.
iPhone you can get from Apple and dealer channels, but all charge the same price as their supplies dry up if they undercut another channel.
O2 still cheaper overall!
I can't help thinking that Orange have missed a MAJOR opportunity to kick O2 with this one. If you look at all the little extras O2 give that Orange don't then the Orange tariffs can work out quite a bit more expensive.
For example..
Picture Messaging - O2 = 4 out of your inclusive texts - Orange = aprox 30p each unless you buy an additional photography bundle.
International calling - If you are on a 600mins+ package on O2 you get their International Traveller Service included free of charge which gives reduced rates - Orange don't provide this so if you were in the USA for example, O2 would charge you 90p/min to call out and 18p/min to receive compared to £1.10/min and 70p/min on Orange. In Europe O2 could be 35p/min out and 18p/min in on O2, while Orange would be 37.2p/min out and 18.6p/min in - not as much of a difference as in the USA but it still can mount up. The biggest difference is text messaging while abroad. O2 take 4 texts out of your inclusive bundle for texts sent whilst overseas, making them free if you within your bundle, while Orange charge you 40p per text in the USA and 10.8p per text in Europe! a BIG difference!!! Both operators let you receive texts for free.
I realise that not everyone uses their phones abroad but the cost of a few texts per day while on your hols can soon rack up!
Add to that Visual Voicemail which is a nice toy when you get used to it, access to The Cloud as well as BT Openzone and a MUCH higher "fair use policy" it is time to seriously think whether Orange is the saviour of the iPhone after all! Whats the point of getting a high end data device on a network with greater 3G coverage if there are restrictions in place to stop you using the features you would want the faster speeds for!
Madness n Orange's part!!
Orange Contract
Having a look at them there T&C, you can get the iPhone 3GS (not that anyone would want to, I own an iPhone and never use it because its rubbish) and constantly go over your download limit of 750Mb per month which after repeatedly "abusing" the network like that Orange will suspend your account / terminate your account so you get to keep the mobile phone and are only in a contract for a few months!
Paris, cause I'd like to be in her for a few months ;)
@ Robert E A Harvey
WTF?
"Apple's monopoly on supply remains in place"
A bit like Ford's monopoly on supplying a Mondeo?
Fair point, this isnt a monopoly, this is a cartel.
Just like the car dealerships and manufacturers operate :)
Check the handset
Regardless of the price differences, be sure to check that the provider you of choice hasn't broken the handset! Orange disabled Wifi for everything but making phone calls at home, in their version of the HTC Touch 3G. I'm pretty sure Apple prevent such changes to the iPhone, but check with the provider that they haven't broken the handset with their own firmware before signing up!
