O2 attempts to boost iPhone with tariff cuts

Having failed to reach its iPhone sales target, O2 is revising its tariff to make it easier for potential users to understand and, more importantly, to make it cheaper. The company claims that U.K. customers on €50 per month contracts will now get three times as many minutes and more than double the number of texts than before--compared to the 200 minutes and 200 texts they receive today.

However, according to Raymond Yu, analyst at Ovum, this move seems unlikely to attract many new subscribers. "The price of the iPhone (€375) and total cost of ownership (minimum €50 per month on an 18 month contract) will still be the main barrier to uptake."

The company said it was revising the current €77 a month tariff and lowering the price to €63--while keeping the call minutes and text message numbers the same.

For more on this story:
- read The Register and Ovum