Tiers start flowing at O2 UK

The floodgates have opened, as UK carrier O2 becomes the latest operator to put an end to all you can eat data. New and upgrading smartphone users will be affected, making the move rather timely in light of the imminent launch of the iPhone 4.

O2 UK CEO Ronan Dunne, who famously apologised for the poor performance of the O2 network in the wake of the launch of the iPhone 3G, was on hand to point out that the vast majority of smartphone users will be unaffected, it’s the heavy consumers of data that will be hit hardest.

And more importantly for O2, the company can start spinning a profit from mobile data usage. Based on current usage patterns, 97 per cent of O2 customers would not need to buy additional data allowances, as the lowest bundle – at 500MB – provides at least 2.5 times the average O2 customer’s current use, said Dunne.

“We know that customers are looking for clarity in pricing as too many offers have clauses and catches which are not easy to understand. With the wide range of internet based services now available on mobile devices we’re providing customers with generous clear data bundles that give customers freedom. This enables us to provide a better overall experience for the vast majority of customers and to better manage demand,” Dunne said.

“By doing this, we are laying the foundation for a sustainable data experience for all customers and the huge possibilities that technology will create over the coming years.”

From June 24, also known as iPhone Day, O2 will introduce three data bundles for new and upgrading smartphone customers.

O2 Smartphone Tariffs* Consumer 24 month contract

*Usual BlackBerry supplement applies

Users will also be able to buy additional data Bolt Ons which include 500MB for £5 or 1GB for £10 and O2 will send users regular text messages to help them manage their usage. Unlimited wifi will still be included through The Cloud and BT Openzone hotspots.

In related news, O2 has revealed details of its ‘Early upgrade” offering for eager iPhone users wanting the iPhone 4. It will cost £20 per month on top of the existing tariff, for the remainder of the contract; the signing of a new 18 or 24 month contract and the cost of the new hardware, which is as yet unannounced.