O2, contracts, iPhones & Apple lovers

Dear O2

I know you are a business, here only to make a profit. I get that, I honestly do. You are an international company and know the mobile communications market very well. This I understand and readily admit.

You have signed an exclusivity deal with Apple and I am sure that whilst initially it wasn't the money maker you thought it might be the launch of the iPhone 3g and the impending launch of the 3GS has certainly helped.

It would seem, however, that you have one small gap in your knowledge-base. The Apple user. Fiercely loyal, intelligent and not afraid of a fight - they like the latest equipment but hate to be ripped off for it. A lot of Apple users hold influential jobs and those that don't know how to make their voices heard.

Can I suggest that before the end of Wednesday careful consideration be given to the following points - you are in a long term business where keeping customers loyal and happy is increasingly important. Apple users tend to have long memories and high expectations of customer service. You gave new adopters no choice but to agree to an 18 month contract on a phone that would be replaced within 12 months. You made no attempt to appease customers who had their phones rendered inoperable and un-useable by the Apple Screen Of Death in the early OS2 days of the iPhone. Holding existing customers to the letter of the contract may turn a fast buck, but will kill brand loyalty and will lead to a lot of resentment that will inevitably be spewed across all types of media.

Maybe, just maybe, the loyalty of these users is worth some consideration. I doubt many would expect to be let out of their contracts freely, but a little compromise goes a long way.

Last edited by Bluemoonin65 on Tue Jun 09, 2009 12:35 am; edited 2 times in total

AT&T are not letting customers upgrade early without cost. Source


From the article:

I have just read my contract - I can now lower my monthly tariff as I have been on the contract for longer than 9 months - so therefore decreasing the money O2 makes off me.

It's a contract - we signed up for 18 months at a set rate. The iPhone 3G was heavily subsidised and the contact offsets that cost thus there is no basis whatsoever for us to complain that we can't now upgrade to the latest phone at the same subsidised rate. If you are an iPhone 3G customer and you want the 3GS (as you so badly need a digital compass and video recording) then you need to pay your way out of your existing commitments. Whilst I agree that it would be nice if the contract cancellation was slightly less as you are going to a new O2 contract (maybe they could put you on a 24 month contract at the same price as the 18 month contract rates), I can see entirely why they haven't done that as they don't need to and nobody in their right mind would expect them to.
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I am well aware of what a contract is, but expectations formed by the deal offered to early 2G adopters have a part to play and such a change in policy will bring about a reaction.

The point is that O2 are alienating a large number of otherwise loyal users here, and yes they are quite within their rights to do so legally, but does that make it a wise decision?

The proof of the pudding as they say is in the eating. It should be an interesting few days!

But the difference is that with the 2G people had paid outright for the phone whereas for the 3G it was subsidised. The expectation isn't there for that reason. If I'd paid £400 for the iPhone 3G without subsidy then I'd expect a cheaper upgrade to the 3GS but that's not happening this time.
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Those might be your expectations, but I don't believe you have the authority to decide that they should be the expectations of all and sundry and they certainly aren't mine!

In a market where most brand new phones with better features are available free and with cheaper contracts offering many more minutes and texts whilst at the same time having paid not a small sum for the 3G then this approach, in context, seems overly harsh and exhibits a misunderstanding of the core market of iPhone buyers. That might clash with your sensibilities but it doesn't stop it from being true!

Think I am a one off? My Twitter app is flooded with many who agree.

I highly doubt there is another phone on the market with the power of the iPhone (remember it has a full iPod built in which would normally cost around £200) that you would sign up to an 18 month contract on and then 12 months in it gets an upgrade and they give it to you for the same price as a new customer. Mobile phone companies don't work that way.



Yes I have been following the "debate" on Twitter - it seems the majority of people in the UK don't understand basic mobile phone contracts. Whilst I agree people think they have the right to a cheap phone as that happened before, it is not the case for incredibly simple financial reasons which I would have thought would be easy for most people to comprehend. However, it seems that most people believe "6 months left on contract" and "new customer" should be the same thing.
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get a different phone then! your clearly paying for a name and both companies involved no it thats why there is a premium!

Name me one new phone released on the UK market in the last 12 months that isn't capable of playing music files? One!?! That's all an iPod is!

Yes, I like my iPhone and yes I think it outclasses many phones on the market, but that was not the focus of my messages.

name me one mobile company that is giving you brand new software for free?

And video? With a store built in? And a touch screen? The point is the iPod Touch on it's own costs around £200 and that is what is built into the iPhone whereas other phones have a basic play MP3 functionality. There is a reason iPods became the #1 leader in digital music players and why they command such a large audience and price.

And the power of the device is the point as you said there we were in "a market where most brand new phones with better features are available free and with cheaper contracts" which simply isn't the case. There are no devices that come near the iPhone in terms of functionality / price and certainly none that came out and then 12 months later released a better model in which they said "we waive all existing contracts and treat you all like new customers even though you may have had 6-12 months left on your contracts". That is the fundamental issue.
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Sony Ericsson & Nokia from my personal experience both offer a free upgrade of software if you take a phone still in warranty to a local service centre.

Palm do updates for their phones that you can download and install over the internet.

well there is your alternative get a pre! and the whole 18 apps its got right now! or the G1 actually do they still do that?

Nokia 5800 XpressMusic - Free, plays music, videos has the nokia version of app store.

HTC Touch HD - Free, plays music, videos etc etc.....

Initially Apple stole a lead in the mp3 player market, it spotted an opportunity and took it with style beating the few other companies (Creative mainly) who saw the same opportunities. Since then all of their features have been matched.

But that isn't the point either.

And we will not agree so please, have your point of view and allow me to have mine!