It's called an MMS message. You need to turn MMS on in settings. They cost 35p per message on contract or 25p on PAYG.
If sending to another iPhone you can send via iMessage which would be free (inclusive of your data package or on wifi) or you could send an email or use whatsapp which again will use any free data.
I have no affiliation whatsoever with O2 or any subsidiary companies. Comments posted are entirely of my own opinion. This is not Customer Service so we are unable to help with account specific issues.
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