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Do i own the phone?
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user56565 - I don't dispute what you've said is correct and I would totally agree with it. With the exception being that the OP said that O2 were willing to let him go without a termination fee and in that respect O2 have a right to request the handset back. If a termination fee was being charged, then the contract would have been fulfilled and the handset would be the OP's to keep. Like I said, the cost of the handset needs to be covered, either by the termination fee, full payment for handset or by returning the phone.
I've only pointed out the clauses in the contract which imply the handset and the service contracts are tied for the minimum term, so a breach in one would default the other. As some people seem to think the two are totally detached from each other.
Anyhow to cut a long story short...
1. O2 are kind enough let you go 17 months early without a termination fee, give back the phone. Win!
2. Otherwise pay the termination fee and keep the phone. Lose!
You may be able to get some compensation back for the lost/lack of service for x days, but you'll have a hard time proving that to the courts.
I don't think Trading Standards can help much and you'll be wasting everyones time as O2 have already been more than generous to let you out of a 24 month contract early for free.
I've already spent too much time on this thread, trying to convince someone to do the right thing.
Good luck to the OP whatever he decides, lets hope we don't see a post in the future about O2 chasing for an unpaid handset.0
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