If like me you’ve been waiting for the iPhone 3G S a while and have been anticipating the main new features, mainly;

• Compass
• Faster CPU
• More RAM
• 32GB Space

Then like me you probably already own an iPhone 3G, here in the UK the only service operator to choice from is o2. I signed up for my iPhone 3G on launch day (July 11, 2008) this was my first experience with o2, before that I was using an Orange pay-as-you-go plan.

I wanted to get the new iPhone 3G S in much the same way, on launch day. However o2 iPhone owners with a 3G iPhone cant do this. It seems o2 wont be offering current iPhone users, with any contract left, an early upgrade opportunity.

When asked by MacWorld UK o2 responded

You have to cancel first by giving us 30 days notice. said the O2 customer service rep. It transpires that you won’t be able to just walk into an O2 or Carphone Warehouse store and pay to cancel the contract and pick up your phone.

This means o2 want users to pay £245 just to get out of their contract, let alone the £274.23 price tag on the 32GB version. That cancellation charge is almost as much as the phone!

I fully understand when I bought my iPhone 3G it was heavily subsided by o2 but why cant they offer a slightly higher price for an upgrade like AT&T do ($100)?

With the precedent o2 set on the original iPhone (giving users an early upgrade path) I guess I was just expecting the same treatment. I think the decision o2 has made is fundamentally stupid. Having me sign up for another 18 month contract could only be o2’s benefit, they will get money for the early upgrade, the device and have me locked in again. Furthermore when my contract ends in January 2010 there will be little point in my signing up for a new 18 month contract on hardware that will be updated in July 2010 anyway.

If o2 ever lose their carrier exclusively with Apple I will be the first to abandon ship. There are rumors of Orange getting the green light to start flogging the 3G S in the next 6 months anyway. Come this June 19th I wont have a shiny new toy, instead I will have to be content with iPhone 3.0 on my current 3G hardware.

Im not the only one that feels this way, there are already 4325 twitter signatures (and growing) on patrickaltoft twitition’s post

If o2 cant offer a reasonable early upgrade fee it looks like ill be sitting this iPhone out and that’s pretty sad.

For anyone that really wants to pay o2 out their nose for the 3G S there is an excellent guide on how to get it for the cheapest possible way at allaboutiphone

Update: o2 has now published clear guidelines on their website advising Existing Pay Monthly customers with an iPhone 3G or any other handset their upgrade choices.

Option 1 – wait until eligible for an upgrade.
All O2 Pay Monthly customers are part of O2 Priority List and those paying £35 or more a month, have the opportunity to upgrade early. Customers won’t have to see out the full term of their existing contract before being eligible for an upgrade.

• All customers continually spending over a minimum of £80.00 a month, receive a 6 month early upgrade
• All customers continually spending over a minimum of £50.00 a month, receive a 3 month early upgrade
• All customers continually spending a minimum of £35.00 a month, receive a 1 month early upgrade
  Terms apply. For more information on O2 Priority List click here.

Existing iPhone customers will, however, enjoy iPhone OS 3.0 software which will be free to download to all iPhone customers from 17 June offering over 100 new features.

For iPhone 3G customers this includes the much anticipated MMS (from 19 June) and also internet tethering (using your iPhone as a modem – also available from 19 June). Find out more.

Option 2 – purchase the iPhone 3G S on Pay & Go
From 19 June. You can give your existing iPhone 3G to someone you know.

Pay Monthly customers can place their existing iPhone 3G sim card into the iPhone 3G S and receive all the latest functionality. Customers must continue to pay for their existing Pay Monthly tariff.

Option 3 – pay the remainder of their monthly line rental in one payment and sign a new Pay Monthly contract.

Each one reads about as unappealing as the last.