iPhone "$0 upfront" in Australia?

By Stephen Withers
Tuesday, 10 June 2008 10:19

Mobility

Vodafone is expected to offer the new iPhone 3G on a $A0 upfront contract.

So says Nathan Burley, an analyst at consulting and advisory firm Ovum.

All Vodafone has announced publicly is that it will start selling the iPhone 3G on July 11, and the handset will be offered to prepaid and contract customers.

I wonder where that leaves people like me, who are out of contract on a postpaid plan? Will we be able to buy a 'prepaid' iPhone 3G and use it with our existing Vodafone SIM? Or will it be necessary to go back on contract?

The answer that iTWire's David M Williams was given by staff at a Vodafone store was that the iPhone will be sold outright and unlocked for $A950. If that was the good oil (he was also told he could have one next week, not next month, which does make me wonder), it would make a mockery of Steve Jobs' claim of equivalent pricing around the world.

But then again, maybe $US199 plus the profit on a two-year contract is equivalent to (though not the same as) $A950?

Anyway, Burley also had a warning: "Australia rural users should also beware."

Beware of what? See page 2 for the answer.