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The full T&C's contradict the other info from their website:
Inclusive Messages and Message Charges
Inclusive messages on O2 Pay Monthly tariffs (including iPhone tariffs) can be used for unlimited:
texts sent in the UK to UK mobiles,
(for 2009 Pay Monthly tariffs only and not 2010 tariffs)...
The £40 charge is to allow you to keep the same number of monthly minutes that you had at £35 but there is no reason why you could not drop your inclusive minutes allowance and take the £35 tariff with unlimited texts. If they told you anything other than this then it is a lie.
Also MMS are...
I could be tempted to switch to the new iPhone 20 tariff which drops my inclusive minutes from 600 to 300 but then add the Your Family bolt on option for £7.50 in order to get unlimited calls to 4 other o2 numbers. The majority of my usage would easily be included within this and anything else...
Anyone can switch onto the tariff so long as it's equal in value to your existing option if you are within the initial 9 months of a 18 month contract. All other people can change to any tariff at any time once per month.
I see the standard Simplicity tariffs now have unlimited texts, I wonder if the iPhone Simplicity 20 tariff is the same?
EDIT:
Yes but it now cost £25 per month for the same number of minutes.
http://shop.o2.co.uk/tariffs/sim-only-iphone
The £35 per month 18 month tariff is worse than it was...
The YT video is impressive but the handset definitely had slowdown issues by the end of his test. The new Palm Pre Plus was capable of opening 50 apps at once which was also impressive.
Virgin Media
TV: XL inc on demand, catch up and ESPN
Phone: L Weekends and Evenings
BBand: XL
£49 per month
I was told to upgrade to 50M/bit BB would cost a additional £7.50 per month.