Cheaper iPhone tariff launched by Tesco MobileTesco Mobile lowers upfront cost for iPhone

12 April 2010

Tesco Mobile customers can purchase the iPhone 3G 8GB for £100 when signing up for a £35 per month one year contract.

Tesco Mobile's £35 per month tariff offers the iPhone 3G 8GB for £100, iPhone 3GS 16GB for £200 or iPhone 3GS 32GB for £275 when taking a 12-month contract. The plan includes unlimited texts, data and Wi-Fi and 750 free voice minutes each month. 

Check out how the Apple iPhone rates compared to other smartphones in the Which? mobile phone reviews.

Tesco Mobile Apple iPhone tariffs

Tesco Mobile offers another 12-month contract with a lower monthly fee of £20 per month but customers pay a higher one-off handset charge to purchase the iPhone. For the iPhone 3GS 16GB, customers would pay £120 more for the smartphone at the start of the contract. 

Combining the monthly fees over the contract period with the initial handset charge, and the £35 per month contract costs £620 overall, while the £20 per month tariff costs £560. Although the £20 tariff costs less over the entire period of the contract, customers must be willing to pay a higher initial fee. 

Tesco points out that customers can also choose to get a free iPhone 3GS 16 GB if they take out a 24-month contract with the higher monthly cost of £45. 

For full details on Tesco Mobile's tariffs and pricing see the Tesco website.

See our video buyers guide to choosing a mobile phone handset for more help on how to find the best handset for you.

Other Apple iPhone tariff options

According to Tesco Mobile iPhone sales have been strong, with a real gap in the market for 12-month tariffs. Tesco is the only network provider to offer a 12-month contract for the Apple iPhone. Other networks offer 18- and 24-month options. 

The iPhone was locked to the O2 network when it was first released in the UK, but customers now have a choice of networks. The iPhone is now available from O2, Vodafone and Orange as well as Tesco Mobile. All providers offer pay monthly tariffs but only O2, Orange and Tesco Mobile have a pay as you go (PAYG) option. 

Customers who already have an iPhone may want to consider a Sim-only tariff. At the moment O2 are the only provider to offer this option, but Tesco Mobile says as it rolls out more and more iPhone deals, Sim-only is likely to be a possibility in the future.


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