uSwitch responds to possible O2 iPhone deal

6 July 2007

Reports that O2 has gained the right to supply the coveted iPhone in the UK could be great news for consumers in the long-term, uSwitch has claimed.

The independent price comparison and switching service believes the deal signals a "fundamental shift in the power between the large multinational mobile phone operators and the phone manufacturers".

Indeed, Apple's decision to pick the biggest operator in each country is a break with the usual mould of mobile network allocation.

Such a move is likely to trigger attempts by other mobile manufacturers such as Nokia, Samsung and Sony Ericsson to enter into similar negotiations in the future with their own high profile products, uSwitch explained.

"The good news for consumers is that O2 is likely to build a full proposition around the iPhone with all the necessary support services and an attractive data tariff," Chris Frost from uSwitch said.

"By teaming up with Apple, O2 will seek to become the network of choice for music fans too."

However he warned: "Those in hot pursuit of the phone will not have the luxury of choosing their network provider and are also likely to be paying a premium for the phone in a climate where most people have become accustomed to getting a phone for free."

Mr Frost also advised customers to consider their options carefully before entering into a contract after it was revealed AT&T, the US supplier of the iPhone, has forced customers to sign-up to a 24 month contract.

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