Tesco iPhone tariff undercuts rivals
iPhone will be available on a 12-month contract for £20 a month, but will cost £222 upfront
Tesco today announced its iPhone tariff and revealed it will become the first company to offer the phone to customers on a 12-month contract.
The iPhone is already available on O2 and Orange, but until now buyers either had to sign up for an 18-month contract or pay the full price for the phone and opt for a pay-as-you-go plan.
Last month, the supermarket giant announced it was in talks with Apple to start selling the iPhone. It had promised to bring a bit of "Tesco value" to the must-have phone of the past two years.
This morning, the retailer said that from 14 December the iPhone 3G and iPhone 3GS would be available from just £20 a month, the lowest monthly contract price in the UK market – although they come with a hefty price tag.
The 3G phone will cost £222 to buy alongside the 12-month contract. Buyers wanting the more upmarket 3GS phone will have to pay £320. The £20-a-month contract includes £60 of calls and texts.
Tesco Mobile will also offer the iPhone 3GS for free with unlimited calls, texts and browsing on a two-year contract, but it will cost £60 a month.
The 12-month deal is expected to appeal to customers who want a short contract. Until now the only affordable way to get an iPhone has been to sign a contract for 18-months. O2 and Orange, the only companies currently selling the phone, charge an up front fee of £87 and £35 a month for 18 months.
Tesco is also offering the iPhone 3G and 3GS on its Triple credit pay-as-you-go price plan. All Tesco iPhone customers will have at least 12 months free unlimited data and access to the BT OpenZone Wi-Fi (UK) service.
Lance Batchelor, chief executive officer of Tesco Mobile and Tesco Telecoms, said: "iPhone is now available and affordable for all, with the best deals in the UK market.
"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."
Vodafone is to start selling the iPhone in January.
Miles Brignall
Thursday 10 December 2009 11.07 GMT
guardian.co.uk © Guardian News and Media Limited 2009
iPhone will be available on a 12-month contract for £20 a month, but will cost £222 upfront
Tesco today announced its iPhone tariff and revealed it will become the first company to offer the phone to customers on a 12-month contract.
The iPhone is already available on O2 and Orange, but until now buyers either had to sign up for an 18-month contract or pay the full price for the phone and opt for a pay-as-you-go plan.
Last month, the supermarket giant announced it was in talks with Apple to start selling the iPhone. It had promised to bring a bit of "Tesco value" to the must-have phone of the past two years.
This morning, the retailer said that from 14 December the iPhone 3G and iPhone 3GS would be available from just £20 a month, the lowest monthly contract price in the UK market – although they come with a hefty price tag.
The 3G phone will cost £222 to buy alongside the 12-month contract. Buyers wanting the more upmarket 3GS phone will have to pay £320. The £20-a-month contract includes £60 of calls and texts.
Tesco Mobile will also offer the iPhone 3GS for free with unlimited calls, texts and browsing on a two-year contract, but it will cost £60 a month.
The 12-month deal is expected to appeal to customers who want a short contract. Until now the only affordable way to get an iPhone has been to sign a contract for 18-months. O2 and Orange, the only companies currently selling the phone, charge an up front fee of £87 and £35 a month for 18 months.
Tesco is also offering the iPhone 3G and 3GS on its Triple credit pay-as-you-go price plan. All Tesco iPhone customers will have at least 12 months free unlimited data and access to the BT OpenZone Wi-Fi (UK) service.
Lance Batchelor, chief executive officer of Tesco Mobile and Tesco Telecoms, said: "iPhone is now available and affordable for all, with the best deals in the UK market.
"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."
Vodafone is to start selling the iPhone in January.
Miles Brignall
Thursday 10 December 2009 11.07 GMT
guardian.co.uk © Guardian News and Media Limited 2009
