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If I were an O2 shareholder I'd be a bit miffed about this model. And frankly I don't believe it is sustainable...as soon as O2, etc are presented with iPhone alternatives (which are bound to be cheaper) they will dump Apple pronto...
The iPhone is good, but not that good...and it is copyable...very copyable indeed. iPhones will help O2 win a few customers at Christmas, but by April next year the other networks will be offering a handset very very similar to an iPhone, and for free on a standard monthly tariff...in fact I would fall about laughing at O2 if another network offered an iPhone-look-a-like on PAYG.
steve/itagg.com
That's branding for you (what Nokia had at one point, by the way, and blew it by releasing 23.654 different models every 2 weeks...).
Oh and we're not talking about a 45 pcm tariff for 30Mb or something. I'm more talking about really enabling the mobile internet (remember the O2 adverts for the mobile web years ago) so something like 3's X-Series silver @5pcm.