It seems it’s not just Joe public and small businesses that are suffering the current financial climate. The ‘Credit Crunch’ is also hitting large corporations as O2 and T-Mobile have found out. O2 and T-Mobile are telling customers to delay upgrades for 3 months so they can save money.

Telefonica and Deutsche, the parent companies of O2 and T-Mobile respectively, appear to be taking action to withdraw cash from the UK businesses. Since the 13th October, O2 customers have been offered £15 per month line rental discounts if they will hold out until January (new financial year) before upgrading.

The quick-fire decision by O2 and T-Mobile has sent both Manufacturers and dealers alike into a spin. Manufacturers have had to review sales forecasts in light of O2’s drive to push non-hardware contract sales for the remainder of the year. Similar frustrations apply for the dealers who have advised that they have no option other than to push O2 customers onto other networks.

Jonathan Earle, O2’s head of consumer postpay acquisitions, said: ‘The enormous success of our simplicity tariff has shown us that some customers are happy with their existing handsets and would rather take an option that allows them to save money, particularly in these credit crunch days.’

O2’s advertising is understood to focus largely on Sim-only deals and broadband between now and Christmas with little to no promotions for contract handsets.

T-Mobile is in a similar position to O2 in that they are asking customers to delay upgrades until January next year. However, T-Mobile is only offering customers £5 off their monthly bills in comparison to O2’s £15 discount.