Orange rules out lower tariff for iPhone users

Leading UK telco Orange has dashed hopes of lower tariffs for iPhone users on its network and is pushing ahead with plans to promote its service based on its network strength. Apple's smartphone will be available on the Orange network from next Tuesday, a development, which will mark the end of the two-year exclusive deal which telecom major O2 had with Apple for marketing the iPhone in UK.

According to industry experts, Orange's decision not to revise the tariff plans is a shrewd business decision as any move to slash tariffs would have affected profitability of both carriers.

Many customers, will no doubt, be disappointed with Orange's decision, however, analysts believe that competition based on quality of service serves as a better approach than one based on price arbitrage and the decision by Oranges appears to be in line with the logic.

The standard iPhone 3G handset on the Orange network will cost £30 a month on a two-year contract while its advanced counterpart iPhone 3GS will be available at £45 on similar two year contract plans.

Meanwhile Orange has rushed to defend its iPhone 'unlimited' mobile browsing offering in the face of anger on Twitter and web forums for adevertising its package as an 'unlimited' package even when it imposes a 750 MB cap on downloads.

Orange has defended its iPhone ''unlimited'' mobile browsing package and dismissed reports that negative feedback would force a rethink before the phone iPhone goes on sale on 10 November.