02
September 5th, 2007Ben informed me of this at The Register.
The company has now admitted that this change to its billing is significant and therefore enables customers to get out of their existing contracts.
Customers … have one month from the receipt of that message to get in touch with O2 if they want to cancel their contract. O2 has told us that such requests will be honoured, but only if received before the end of September.
Update: I just called 02 and they confirmed that if I ended my contract I would be able to keep the handset free of charge. I’m thinking close the contract and get my hands on some sim only goodness.

September 16th, 2007 at 8:53 am
If you’ve just upgraded your handset you should definately do this. It’s like a free handset! You could sign up with another provider and sell the unopened handset they give you, which will most likely pay for a year’s worth of calls.
September 16th, 2007 at 8:58 am
Most providers don’t sell unbranded phones, pretty much just O2. I’m keen to take the sim only option as it’s better value and I’m not tied into a 12/18 month contract.