Tesco Mobile is to offer the iPhone for just £20 per month on contract deals, slashing the cost of the UK’s cheapest tariff for the in-demand Apple mobile phones.
The retail giant will begin offering both the iPhone 3G S and its predecessor the iPhone 3G at the cut-price tariff over 12 months from Monday.
A one-off payment for the handset is applicable, however. This stands at £222 for the 3G model and £320 for the 3G S.
All customers will be entitled to at least 12 months free unlimited data as well as access to the BT OpenZone Wi-Fi (UK) service.
Tesco’s bold entry into the UK iPhone market is likely to reinvigorate competition among carriers and is sure to renew hopes of a price war.
Lance Batchelor, chief executive officer of Tesco Mobile, 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."
Currently, the iPhone is available in the UK on Orange and O2. Vodafone will begin offering the handsets to its customers early next year.