Tesco Mobile has said that it will offer the iPhone from £20 a month – and that it will also offer the first 12 month contract for the iPhone in the UK.
The MVNO will also offer the iPhone 3GS 16GB for free with unlimited calls, texts, and browsing, on a 24 month contract, for £60 a month.
The lowest Pay Monthly price plan starts at just £20 a month on a 12 month contract. On this plan, customers can purchase iPhone 3G 8GB for £222 and will also receive a £60 flexible credit to spend as they choose each month.
Tesco Mobile is also offering iPhone 3G and 3GS on its Triple Credit Pay As You Go price plan. All Tesco Mobile iPhone customers will have at least 12 months free unlimited data and access to the BT OpenZone Wi-Fi (UK).
"iPhone is now available and affordable for all, with the best deals in the UK market," said Lance Batchelor, Chief Executive Officer of Tesco Mobile and Tesco Telecoms.
"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."
Tesco Mobile's host network operator, O2, recently announced a major investment plan for its network, to met growing data demand.