Home > apple, iPhone, money, phone > O2 announces iPhone 3G PAYG prices

O2 announces iPhone 3G PAYG prices

From 16th September you can officially own an iPhone 3G on a pay as you go tariff, but it won’t be cheap. O2 has announced that the 8Gb version will cost £349.99, with the 16Gb at £399.99. That price includes twelve months of ‘unlimited’ browsing and WiFi, with this service costing £10 a month after the first year. Topping up each month will earn you free calls but only to a landline or O2 mobile from a registered postcode’. Sounds a bit restrictive to me.

So how much does this cost compared to a contract iPhone? Here are some numbers based on an 18 month term.

  • iPhone 3G 16Gb on £35 a month tariff – total cost over 18 months is £789 with 600 minutes and 500 text messages a month.
  • iPhone 3G 16Gb on PAYG adding £10 credit a month – total cost over 18 months is £639.99 with 500 free minutes and 100 texts (£10 at 10p per text) plus £10 a month for browsing and WiFi after first year.
  • iPhone 3G 16Gb on PAYG adding £20 credit a month – total cost over 18 months is £819.99 with 1000 minutes and 200 texts (£20 at 10p per text) plus £10 a month for browsing and Wifi after first year.
  • iPhone 3G 16Gb on PAYG with no monthly credit – £459 total cost over 18 months for browsing and WiFi (£60 for months 13 to 18) plus whatever calls and texts are required.

These costs are based on the Favourite Place tariffs that an iPhone PAYG sim uses by default. Other tariffs can be selected once a month. So looking at the prices above, who will want a PAYG iPhone? Those looking for mobile web, apps and email will save money over the cheapest contract.  Anyone with light call and text requirements could save, but if you use all the tariff minutes and texts on a contract deal the PAYG prices are higher. I’m looking forward to seeing the sales figures for the PAYG iPhone.

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