After months of disappointing sales and worse still, activations, O2 has finally responded to customers’ grouses.

The O2 iPhone tariffs were dreadful costing £120 a year more than their normal rates.  Customers obviously thought twice and bought the almost free high end Nokia’s and Samsung’s instead.  Great for O2, but not for Apple.

The tariffs, plus data allowance, now look like good value, and the £269 up front cost not too high when compared to the iPod Touch.  Now all O2 needs is an iPhone with 3G, a 5mpx camera, A2DP and push email.  Drat there is always something more.