O2 has launched what it describes as its 'best ever pay monthly tariff' called On and On.
The deal starts at £26 per month if you keep your existing mobile phone and included unlimited minutes, unlimited text messages and 1GB of internet data. Users who want a new device with the contract will pay from £36 per month.
Sally Cowdry, director of marketing and consumer at O2 said: "On & On gives our customers the most value we’ve ever offered in a Pay Monthly tariff."
"Whether they’re choosing to stay with us or joining O2 for the first time, they’ll be able to talk and text as much as they like, while enjoying the internet on their mobile absolutely worry-free. And only O2 has the added value benefits of priority access to 4000 acts a year with Priority Tickets and everyday offers and discounts with Priority Moments."
The mobile operator said that users will be informed of their data usage via regular text messages and if the 1GB data limit is reached there are no extra data charges. Users who want a higher data cap can double it to 2GB for an extra £5 per month.
O2 is offering a free iPhone 4S on for £46 per month on the new tariff and reduced the upfront cost by up to £40 for the cheaper deals.
Customers can tailor the tariff with O2's Bolt Ons for extras including insurance and picture messaging. The On and On tariff also included O2 bonus offering such as Priority Tickets and Priority Moments.