If you haven’t got an iPhone yet because the prices are still too high for you then the recent Tesco Mobile tariff announcement could be just the thing for you. Tesco has revealed that they will be selling the iPhone in time for Christmas and are offering a Pay-as-you-go option as well as two Pay-monthly contracts.

The iPhone 3G and the iPhone 3GS will be available from 14th December. The cheapest way to get an iPhone with Tesco is to go for the £20 a month tariff with a 12-month contract, but you won’t get a free iPhone with that tariff. You will need to pay £222 for an 8GB iPhone 3G, £320 for a 16GB iPhone 3GS or £407 for a 32GB iPhone 3GS. Splitting the £222 (for the 8GB iPhone) into 12 parts means that you effectively pay £38.50 per month (tariff of £20 + iPhone £18.50). This is slightly higher than O2’s and Orange’s £34.256 (which includes a free iPhone) but with O2 and Orange you need to sign up for a to year contract. This means that over a two year period you save £120 with Tesco mobile (or £10 per month).

The £20 a month subscriptions includes £60 of calls and texts. With Tesco Mobile calls costs 10p per minute and texts 5p to each of your 5 favourite numbers. Outside of those 5 numbers, calls cost 20p per minute and texts 10p to any UK network at any time. That means that for £60 you get something like 300 minutes per month (to non-favourite numbers) assuming you send no texts.

There is also a £60 a month subscription with unlimited calls and texts. Signing up to this for two years gets you a free 16GB iPhone 3GS. In the terms and conditions Tesco Mobile explain that ‘Unlimited calls & texts is for calls/ texts to UK mobiles, 01, 02 and 03 numbers only.’ Also there is a fair usage policy of £500 per month.

If you don’t want to go with a monthly subscription then you get an iPhone with Pay-as-you-go. The call rates are the same but an 8GB iPhone 3G will cost £342.

You can find out more information from Tesco Mobile’s web site: http://phone-shop.tesco.com/iphonelanding/

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