Tesco iPhone tariffs 'undercuts' Orange and O2

Tesco announced its iPhone tariffs today which will see the iPhone go on sale for as little as £20 per month on a 12 month contract.

The Tesco iPhone tariff, which is the lowest currently available, undercuts both Orange and O2 with its 12 month contract.

Until now the iPhone was only available on a minimum 18 month contract with O2 and Orange unless customers bought the device outright and opted for PAYG.

According to The Guardian, Tesco has confirmed that the iPhone will be available from the 14 December. Both the iPhone 3G and the iPhone 3GS will be available on tariffs which start at £20 per month on a 12 month contract.

However, customers opting for the £20 contract will have to pay £222 for the iPhone and £320 for the iPhone 3GS as an initial down payment. The £20 contract includes £60 worth of calls and texts.

In addition to this, Tesco has also confirmed that it will be offering the iPhone 3GS for free with unlimited calls, texts and browsing on a two-year contract for £60 per month.

Tesco is also offering the iPhone and iPhone 3GS on its Triple credit PAYG plan, where all Tesco customers will have at least 12 month free unlimited data, as well as access to the BT OpenZone Wi-Fi service.

The Guardian has Lance Batchelor, chief executive of Tesco Mobile, as saying, "The iPhone is now available and affordable for all, with the best deals in the UK market.

He added: "This is a fantastic announcement for us and we're delighted to make iPhone available to our customers. It shows what a serious player in the mobile market Tesco Mobile has become."