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Tesco Mobile reveals Apple iPhone price plans

Retail giant Tesco has revealed its pricing plans for the Apple iPhone, which will go on sale in its stores and on its website from Monday (14th December). In a first for buyers of the inconic smartphone, it will be available on a 12-month contract at £20 per month – but there's a catch.

On a £20 monthly contract, an 8GB iPhone 3G from Tesco will cost £222, a 16GB iPhone 3GS will cost £320 and the 32GB iPhone 3GS will set customers back £407. To get the smartphone handset for free, a two-year contract at £60 per month is the requirement, netting users unlimited calls, texts and internet.

The catch with the latter option, however, is that it only applies to the 8GB iPhone 3G and 16GB iPhone 3GS. A 32GB handset comes with a £50 surcharge attached.

For those who favour pay as you go, triple-value credit is available from Tesco, meaning a top-up of £15 nets customers an extra £30, for example. A pay-as-you-go iPhone 3G 8GB from Tesco will cost £342, while the 16GB 3GS costs £440 and the 32GB option a substantial £538.

From January, Vodafone will also sell the iPhone.