O2 to scrap unlimited data plans on iPhone launch day

500MB inclusive cap set to disgruntle customers

Limits to generate cash for O2

O2 has announced a controversial decision to scrap unlimited data plans for smartphone users, ensuring internet-hungry users pay more for their browsing.

Starting on June 24th, by no means a coincidence the same day that the Apple iPhone 4 launches, the network provider will introduce monthly charges based on usage for smartphone customers, capping their inclusive data use.

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The new data charges will apply to all new customers as well as existing customers who upgrade to a new smartphone handset such as the Apple iPhone 4. Existing contracts will not be affected by the data plan changes until they are up for renewal.

Under the new capped data limits, £35-per-month contracts will include 500MB of data per month, the equivalent of watching 60 YouTube videos, downloading 50 music tracks or looking at 5,000 web pages. Customers will be charged an extra £5 for each additional 500MB of data they use.

Although many O2 customers will feel justifiably disgruntled at the new data conditions, the network aren’t expecting a backlash and insist the money-making scheme is essential for further investment in faster network development.

Other network providers are expected to follow O2’s lead and remove unlimited data plans as they look to further capitalise on the rapidly expanding smartphone market.

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