I actually had a bit of a problem a while ago when I asked O2 about selling my iPhone. Here's what I found out.
- Despite what they might tell you, it IS possible to sell your iPhone. All this stuff they tell you about the new user not being able to activate or whatever is rubbish. The guy I spoke to had been 'trained' for iPhone support, and thought you couldn't de-activate the phone. After a lot of calls, I spoke to the head of the 'iPhone department', who said that they've been trained wrongly.
- If you have O2 Insurance, you'll need to start a new contract to insure your new iPhone. That probably means restarting your existing contract and having an 18 month commitment from 3G iPhone release date. I don't know if they'll insure imported models (in case its not a simultaneous global launch).
- O2 Insurance have their own iPhone stock, separate from the retail division. If you were hoping your iPhone would get 'accidentally lost' on the tube, and you'd get a swanky 3G model in return, think again. I don't know if O2 insurance has been giving their stock to retail since the -£100 offer started. It's possible they're out of EDGE iPhones. Oh, and the insurance terms only specify that they have to replace it with a 'similar' phone. So now that the EDGE iPhone has EoL-ed (and isn't being made anymore), you're unlikely to get an actual iPhone as replacement should yours actually fall under the insurance's coverage. A court case waiting to happen? You bet.