Amazon have started to sell mobile phones with contracts. Of course Amazon have been selling mobile phones for years, but they now appear to have partnered with O2 so you can get a new or upgraded contract at the same time as buying a new handset.
The reason that Amazon launched their Fire Phone on O2 only now starts to make sense. You can’t buy Amazon’s own phone on a SIM only plan, but as a quid pro quo you can choose an alternative handset and sign up to an O2 contract on Amazon (unless you want an iPhone… Amazon aren’t offering them!).
Currently Amazon are highlighting the HTC One M8, their own Fire Phone and the Honor Smartphones with contracts from £13 per month.
Amazon are already undercutting O2 on some tariffs, whilst the Amazon Firephone on a 24 month unlimited minutes 2Gb data is £33 per month from either Amazon or O2, the HTC One M8 on the same tariff is £38 per month from the O2 website but only £33 per month if you buy it on Amazon.
If you sign up for an O2 mobile phone contract with Amazon the handset will come from them, but your mobile contract with be with O2 with a direct debit to O2 set up as part of the purchase. If you already have a contract with O2 you can upgrade it, or choose to port your number with a PAC code from an alternative mobile phone operator.
The only thing Amazon appear to have really done wrong is only strike a deal with a single network provider. For those with dodgy O2 coverage in their area or who’d prefer a tariff or service from a different network Amazon won’t be the place to buy your new mobile phone… unless of course you want a SIM free handset which Amazon continue to sell without contracts.