New contracts let O2 customers upgrade their handset at any point, without having to pay the full remaining balance.
Network operator O2 has launched a new mobile price plan that lets customers upgrade their mobile phone at any point during the contract.
The first deal of its kind in the UK, O2 Refresh is a 24-month tariff that keeps the cost of calls, texts and data completely separate from the cost of the phone.
It means customers are free to upgrade their phone at any time during the contract, without having to pay for the remainder in full. Instead, they just pay off what they still owe for the device.
Once they've upgraded, the contract starts afresh and will run for another 24 months.
Feilim Mackle, sales and service director at Telefonica UK, which owns O2, said: "Mobile phone technology continues to advance at a rapid pace - yet the way phones are sold has remained largely static.
"Increasingly, our customers are telling us that they don't want to be tied to the same phone for two years, and with 4G coming to O2 this summer, we want to make it easier for our customers to benefit from the latest technology."
Customers have a choice of three O2 Refresh price plans:
- £12 a month - 600 minutes, unlimited texts and 750MB of data
- £17 a month - unlimited minutes, unlimited texts and 1GB of data
- £22 a month - unlimited minutes, unlimited texts and 2GB of data
The phone is then paid for in monthly installments, with handsets available at launch including the iPhone 5, the Samsung Galaxy S3 and Note 2, the BlackBerry Z10 and the new HTC One.
It's worth pointing out that O2 Refresh customers, who pay separately for their phone and usage, will still pay the same amount overall as they would on a standard O2 contract.