The iPhone: Orange vs. O2

The iPhone is now available on Orange. How do its tariffs compare with O2's?

So it's finally happened. The iPhone, so long shackled to mobile operator O2, has decided to break rank and jump into bed with the other networks.

First to announce the move in September was Vodafone, and its iPhone will hit the shelves early next year.

It was closely followed by Orange, which quickly released its iPhone deal on November 10.

But if you're thinking of ditching your current handset in favour of an iPhone, which network offers better value for money? Here's what you need to know.

Monthly cost of O2 and Orange iPhone deals

The first thing we should do is look at price, and what both networks are offering for your cash.

Here's how the networks compare on an 18 month contract:

*Price plan costs have been rounded up. All plans include unlimited data and email (fair use cap of 750Mb on Orange applies)

As you can see, there is very little difference in price between the two networks, and at best you can hope you save yourself about £1 over the life of your contract.

However, there is one deal that gives Orange customers a better deal. If you want an iPhone 3G or 3GS on a £30 contract, you'll get double the minutes and texts on Orange than with O2. If you opt for a 24 month plan, you'll even get a free iPhone 3G.

Also remember that Orange gives you a free 'Magic Number' when you sign up. This means you can make unlimited calls (of up to three hours a day) to an Orange number of your choice, free of charge.

Coverage of O2 and Orange on the iPhone

Good 3G coverage is a must when it comes to smartphones.

According to Ofcom, Orange offers superior coverage to rival O2. However, maps with a few coloured dots aren't likely to tell you much about what your experience will be like in the real world.

Put your postcode into Ofcom's coverage checker to see what reception is like where you live and travel to, or better still, ask feedback from a friend who's got a smartphone for their opinion.

A matter of text

If you are a heavy texter, it may be worth considering Orange's unlimited text bundle (which has a fair use policy of 3,000 text messages), and costs £7.34 per month. If you send more than 562 texts per month, it's worth adding on.

O2 offers a text bundle at a similar price, though you'll only get an extra 500 messages for the same money.

One thing I don't like about the iPhone is that it doesn't tell you when you've tipped over the 160 character text message limit into another message.

iPhone apps such as CharCounter combat this problem by showing you how many characters you've used. You'll have to be bothered enough to copy your text message into the app. But it's free, and could help those pennies you'll save turn into pounds.

Where O2 comes up trumps

One good thing about O2's tariffs is that it takes text messages sent from abroad from your regular allowance.

One text or picture message sent from overseas is equal to four sent in the UK. This compares to charges of up to 50p for messages sent via your Orange iPhone.

As an O2 customer, I can tell you this has proven very handy in the past, and is something to bear in mind if you're a jetsetter.

One final point on taking your iPhone abroad: Make sure you turn that data roaming button off when travelling.

Whatever your network, roaming abroad is NOT cheap, and you will get a nasty shock if you start surfing while on holiday.

Perks of the network

As well as worrying about the best add-ons to make your deal worthwhile, the biggest perk for Orange customers is Orange Wednesdays, where you can get 241 cinema tickets up and down the country every Wednesday.

Orange has created a new iPhone app to make it easier to get the code sent to your phone, and check out cinema times and reviews.

For O2, its Priority ticket service allows you to book tickets for popular acts such as Leona Lewis up to 48 hours before they go on general release.

You sign up online, and alerts are sent direct to your phone and email. A priority iPhone app is also on its way soon.

O2 iPhone customers can also get three months worth of Sky Mobile TV free, which includes Sky News, and Sky Sports 1, 2 and 3.

Text SKY to 2020 from your phone to get a code for the deal. Just be sure to cancel it at the end of your trial if you don't want it, or you'll be charged £6 a month for the service.

A new dawn?

As the list of O2's competitors gets longer, prices will only come down.

After Orange's disappointing offer on price, I doubt Vodafone will be causing more than a few ripples when it jumps on the bandwagon in the new year.

But as with all technology, when there are more providers to choose from, the perks will eventually wear off, and providers will have to find better ways to distinguish themselves from the rest.

And how better to do this than through price?

Tell us what you think

Is the iPhone good value for money? What do you think of Orange and O2? Are you holding out for cheaper tariffs? Tell us your views using the comments box below...

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