O2 starts shipping iPhone 4 on pay-as-you-go basis

High priced O2 iPhones follow Vodafone's PAYG route

iPhone 4 available on PAYG through O2

Following Vodafone’s announcement earlier this week, O2 has started shipping the iPhone 4 on a pay-as-you-go basis with handset costs set higher that those of fellow operators and only marginally lower than the SIM-free devices on sale through Apple.

Handsets will cost wannabe O2-branded PAYG iPhone 4 owners £495 for the 16GB version and £595 for a 32GB model, £15 and £25 more expensive than those being offered by Vodafone respectively.

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Shipping with a text a web SIM and a 500MB monthly data allowance, iPhone 4 customers will be able to benefit from the top-up offers available to other O2 PAYG users. Those O2 Apple fans topping-up between £10 and £14 a month will be granted 300 free texts which rises to 500 free messages if they top-up by up to £29. Adding £30 of credit a month will receive unlimited text messages.

With O2 only allowing new customers to buy the iPhone 4 on pay-monthly contracts from last week and Vodafone having already been forced to halt its PAYG deals due to stock shortages, the availability of the latest Apple handset could once again prove the bugbear for eager customers.

Tempted by the new iPhone 4 PAYG offerings or more eager to get a FroYo touting Android? Let us know via the T3 Twitter and Facebook feeds.