O2 to push iPhone with new ad campaign

Apple's iPhone service provider in the UK, O2, is planning to embark on a multi-million British pound advertising campaign in conjunction with the Cupertino company later this month. Reuters reports that O2 UK Chief Executive Matthew Key is claiming it will be the "most significant campaign" in period leading up the crucial Holiday season. The CEO is also alleging that 80 percent of O2 UK's "high-value" customers wanted an iPhone, and a whopping 40 percent of the higher-spending customers on rival networks would be prepared to switch operators to get the handset. The report also speculates that O2 may be giving away 20 to 30 percent of voice and data revenues in return for the exclusive "multi-year" contract to sell iPhones. O2 iPhones will be tied to an 18-month contract with O2.

Following the announcement of the UK iPhone deal with O2, Apple chief Steve Jobs and a representative of UK cellular carrier O2 agreed to a Q&A session during Apple's special event at the Regent Street store in London. Among other revelations, Jobs said the faster third-generation ("3G") wireless technology will come to iPhone once the company can maintain at least five or more hours of battery life, countering recent claims by analysts, The industry has been waiting for faster mobile connectivity, as many have lamented the speeds of the woefully slow AT&T EDGE network.

Apple will begin seling the iPhone in the UK starting November 9th. The device will be available for £269 without any rebates or subsidy and will be offered with three separate plans: £35, £45 and £55 per month. Each of the three plans will offer free data traffic along with access to a network of 7,500 WiFi hotspots, while users will billed for their calls and messages.

Filed under: Apple