O2: iPhone 3GS upgrade terms same as other O2 devices

It is no secret that iPhone 3G customers who still have a number of months left to run on their O2 contract are not happy, this is because they are having to pay to upgrade to the new iPhone 3GS. Many customers feel that, as they are loyal to both Apple and O2, then should not have to pay the remaining months left on their contract.

O2 have hit back and defended their decision by saying that the iPhone 3G S terms are the same as any other O2 device. Customers who wish to upgrade to the new iPhone 3G S are looking to pay in the region of £500 if they wish to purchase the new handset and end their contract early. When you look it like that, the £500 figure does look a bit excessive.

O2 said that the iPhone is already subsidized on the tariff that they are already on, and they just cannot do this to a second device for the same customer. There are however ways for you to be offered an early upgrade, but this means that you would need to be paying at least £80 each month on your monthly bill.

Pocket Gamer said that some of this blame should be aimed at Apple, as they seem to have a twelve month cycle on the iPhone so why is there only a choice for an 18-month or a two-year contracts.

Who do you think is more to blame for the upgrade issue, Apple or O2?