O2 has cut the cost of its smartphone early-upgrade scheme, amid increasing competition from the likes of giffgaff and Tesco.
Launched earlier this year, O2 Refresh is intended to make it easier for the carrier’s customers to change their handset to a newer, more bijou handset mid-contract.
Its major USP was that it split the cost of the contract into a charge for monthly allowances and a separate charge for the smartphone.
When upgrading, subscribers are able to pay off only the cost of the handset, but keep their existing contract for minutes, texts and data.
That’s in stark contrast to previous contract terms that were standard across the industry and that made customers liable for the cost of the entire contract if they decided to change to a new phone.
From today, O2 has reduced the cost of Refresh with the cannily named Speed to Refresh tariff that gives existing O2 customers 25% off their existing contract.
O2 claims that consumers who take up the offer could save over £190, with handsets included in Speed to Refresh including the iPhone 5S, HTC One, Samsung Galaxy S4, Blackberry Q10 & Z10, Sony Xperia Z1 and Nokia Lumia 1020.
Gary Booker, O2's interim Marketing and Consumer Director, said: “Our customers love O2 Refresh and since we launched it more than 95% of customers who could buy O2 Refresh have chosen to.
“Our existing customers have been asking us to make it even easier for them to buy O2 Refresh and we think Speed to Refresh will be perfect for them."
All O2 customers who signed up for a smartphone contract between January 1st 2011 and March 31st 2013 qualify for the offer.