O2 releases tariff details for iPhone 4

O2 has revamped its monthly and pay-and-go options

O2 has published data tariffs for its smartphone line-up, which now includes the much hyped iPhone 4 and Dell Streak.

The tariffs include monthly and pay-and-go options, but the operator is still being coy on the cost of hardware.

James Paterson, digital communications manager at O2, confirmed that some of the tariffs - such as the iPhone 4 - will require customers to pay upfront for the handset, as is the current practice.

These prices will be released "before the launch and will give customers a fuller picture", he added.

The £25 per month 24-month contract offers unlimited text messages but only 100 minutes of talk time, and will be seen by some consumers as poor value.

However, Paterson defended the tariffs saying: "O2 is offering customers options and is not enforcing one tariff on them. People can choose which tariff to buy, depending on what they want to spend."

O2 has also revealed that it will no longer offer unlimited data plans. A data cap will come into force from 24 June under which customers paying up to £35 per month will get a 500MB allowance. This rises to 750MB for those paying £45, and is capped at 1GB for those forking out £60 per month.

The company said in a statement that "97 per cent of O2 smartphone customers would not need to buy additional data allowances, as the lowest bundle [500MB] provides at least 2.5 times the average O2 customer's current use".

New and upgrading customers will continue to receive unlimited data until 1 October, when they will be able to buy additional data bolt-ons which include 500MB for £5 or 1GB for £10.

"We know that customers are looking for clarity in pricing as too many offers have clauses and catches which are not easy to understand," said Ronan Dunne, O2 chief executive.

"This enables us to provide a better overall experience for the vast majority of customers and to better manage demand."