From what the O2 website says, with it’s scattered and misleading content all over the shop – it appears to be FREE to upgrade to an iPhone 4 aslong as you buy out your exsisting contract.

Unfortunately this is not the case, nor do they offer cheaper prices on the handset when you have a 24month contract compared to having a 18month contract – quite naughty really.

Anyway after you’ve done the “We’ll have your pants down mid contract” Calculator over at:

O2 iPhone Early Upgrade Option for iPhone 4

Works out at £280 for me, not too bad considering – if they’d give you a free handset – bearing in mind the iPhone 4 isn’t available for New O2 Customers for a while!

Let’s look at the average joe’s plan and then see the price for the handset:

• £40/month for 18months @ 600 minutes/month
• £35/month for 24months @ 600 minutes/month

With the handset costs being static regardless of your contract term let’s see the prices:

• 16GB Apple iPhone 4 – £119
• 32GB Apple iPhone 4 – £209

That’s not too bad considering – though if you’re buying out your existing contract that’s pretty harsh!

Good News Though! You can trade in your OLD iPhone 3GS 16GB for £232 online with O2, or £247 for your 32GB iPhone 3GS, checkout: O2 Recycle

I MUST STRESS Though, O2 Recycle CANNOT be done INSTORE, You must send you’re handset off and it can take upto TEN WORKING DAYS before you get your money!

I hope that helped clear up some things for people – I didnt quite find the O2 Website very clear at all!