Wow...way to screw it up O2! But I have a nasty feeling that the other companies will fall in. I'm currently with T-mobile, and was going to switch to O2 before I found out that they were carrying the iPhone 4 (though the upgrade team did allude to that when they called me last month). Now I'm gonna stay with T-mobile, and hope that they continue with the unlimited data, though I'm not holding my breath considering their merge with Orange. Possibly my 3+ years of custom might be able to swing me a £5/month discount or data upgrade...We'll see.
NoExpectations - data usage (not bandwidth) is not a physical, unsustainable commodity. As long as we're paying for network maintainence then we should be able to use the bandwidth as much as we like, regardless of our price plan. I imagine that the profit margins on phone contracts are rediculous - this is not a move to safeguard the network, its to line the shareholders pockets more. Welcome to capitalism!
Oh, and I don't know about you, but I pay a fixed rate for 'unlimited' water, as well as one for home broadband!