O2 announce Apple iPhone 4 early upgrade deal

Cash-back offer for iPhone 3GS trade-in to offset costs

Charges to get out and more to get back in, O2 iPhone 4 upgrade could get costly

O2 has announced the terms of their early upgrade scheme for the upcoming Apple iPhone 4, details of which are sure to tempt many of the company’s current iPhone contract holders.

With just 18 and 24-month contracts being offered at the launch of the iPhone 3GS less than a year ago, none of O2’s current breed of iPhone owners will be in a position where their contract has expired come the launch of the iPhone 4 on June 24th.

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The new early upgrade scheme however will let existing customers leave their current contract and transfer to the iPhone 4 for a one-off charge of £20 for each month remaining on their present deal.

That is not the only fee upgrading customers will incur, however. As well as having to sign a new 18 or 24-month contract, those wanting to step on up to the Apple iPhone 4 will have to fork out for the new handset, prices of which O2 has yet to announce.

In an attempt to lessen the heavy wallet impact any upgrading customers would face and put use to the outgoing iPhone 3GS handsets, O2 are offering customers the choice to trade in their old iPhones with the 16GB iPhone 3GS fetching £240 and its 32GB sibling getting a £253 payoff.

Under this early upgrade scheme, current 16GB 3GS owners with 12-months remaining on their existing contract could offset the fee to end the deal and jump straight into the new iPhone 4 model with just the cost of the new handset to pay. It is likely, however, that the trade-in prices being offered by O2 will drop when the iPhone 4 goes on sale and popularity in the swap increases.

Whilst Orange, T-Mobile, Vodafone and 3 have all confirmed that they will hold the Apple iPhone 4 alongside O2, none of the networks have yet unveiled any tariffs or handset fees ahead of the start of pre-orders next Wednesday, June 16th.