O2 UK launches the iPhone on prepay

We asked Ricky to look into the new prepay iPhone:

It is going to cost you £350 for the 8GB version, and £400 for 16GB. This will include unlimited browsing and Wi-Fi for the first 12 months. It launches Sept 16th.

Who is the prepay version of the iPhone aimed at? I would at a guess estimate at someone being under the age of 24, who does not want or cannot get a postpay account. They would also be looking for a new mp3 player and a phone because £350 is a lot of money to spend. O2 have also been very clever by including the unlimited browsing and Wi-Fi as people are much less likely to unlock the device and use their own contract or pay as you go sim, the reason is that the value of the sim alone according to O2’s prices is £120.

When the iPhone was launched I was tempted, very tempted but as I still in contract I could not even consider it, now my contract is nearly over I have been looking at the figures. The cost on contract was too much, however I did have hope that the prepay version may be more affordable. I was very wrong.
I honestly believe in this instance having an all in one device is not the best way forward, especially with the issues the iPhone has with its rubbish battery and keeping a decent 3G signal. It’s not just me thinking this either, Orange UK ran a promotion between the 18th to 21st August 2008 where they gave a free iPod touch (8Gb) to all new and upgrading customers who upgraded between these two dates on a 18 or 24 month tariff over £35 a month. I reckon you can guarantee similar offers from orange and the all the major networks in the future. So my advice to you if you are considering an iPhone on prepay don’t bother, get an iPod Touch instead.

And my question to O2 is;

Who is the prepay version of the iPhone aimed at?