O2 ends 12-month contracts

By Editorial Team (Friday, 19th September 2008)

O2 has announced that it will no longer be offering 12-month contracts on any models in its range.

In place of the year-long option, buyers will be able to sign up for 18 months or two years, reports ITPro.co.uk.

The move is in keeping with an overall trend in the industry to require longer contracts as companies look to retain their clients.

With the increased technology availably in mobile phones and the high prices for the top models, providers are looking to encourage more people to get the top models for a lower price but on a longer contract.

However, O2 has become the first company to completely get rid of all 12-month contracts, both through its own retail operations and through independent sellers such as The Carphone Warehouse.

Research from GfK reveals that 18-month contracts now make up 84 per cent of the total sales throughout the UK.

O2 subscribers can get the iPhone for free with a £45 or £75 per month contract.

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