O2 UK to launch smartphone leasing service

Britons using O2 Lease can hire a phone for the year with no upfront charge.

Telefonica O2 says while the platform will not cause customers to make any advance payments, the service will require higher monthly fees for the year-long lease.

Consumers can apply for O2 lease in stores or over the phone. The service will cost new and existing O2 users £55 per month to lease the smartphone, which will come with insurance, 750 minutes, unlimited texts and 500MB of data.

There are also a number of business plans on offer for small firms to make use of too.

At the end of the year's adoption, the customer can return the phone to O2 to start a new contract, receive a new phone or sever all ties.

Sally Cowdry, marketing and consumer director for O2 UK, said: "This is the first time a UK mobile operator has adopted a leasing model. We know that customers and small businesses are used to leasing everyday items from cars and washing machines to photocopiers and office space.