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O2 Upgrade

drp2854
drp2854 Posts: 15 Forumite
My current 12 month O2 contract expires during early July so I have been looking around for my next upgrade/package. However, I am pretty much limiting my options to staying with O2 because I am interested in getting the O2 XDA Orbit with free SatNav. This is where the lunacy of O2 packages begins:

I spoke to O2 about an upgrade telling them I was happy to increase my monthly tarrif from £30 to £35 per month and sign up to an 18 month contract. I was informed that on this tarrif I would have to pay £49.99 for the phone. The only way to get the phone for free was to sign up to a £40 tarrif. This applies even on a 12 month contract. They therefore seem to be pushing me towards what I consider to be a cheaper option overall instead of giving me a free phone on the £35 tarrif. For example:

£35 x 18 months = £630 (no free phone)
£40 x 12 months = £480 (get the free phone)

Where is the logic in this? Surely it is better for O2 to lock you into a longer contract? There are differences with the minutes available with each package but they are not significant.

Does anyone have any views on this?
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