UK mobile network O2 has started offering the iPhone 4S on a new service which it is calling O2 Lease. The O2 Lease service, according to O2, is unique in the fact that it offers customers the option to rent an iPhone 4S with no upfront costs. The deal would run for twelve months after which you can return the phone back to O2 or renew the deal for a newer iPhone model.

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. They understand how it works and what the advantages of a leasing are. We have simply taken this idea and applied it to the smartphone market.”

Of course, as there is no upfront cost, the monthly payments are a little higher than normal. If you decide that the lease model is right for you, expect to pay £55 ($85) a month for an iPhone 4S 16GB model or £65 ($100) a month for the 32GB model. These monthly costs include 750 minutes of talk time, unlimited text messages, 500MB of data and insurance.

Source:  O2 PR