Tesco to introduce iPhone on Monday for £20 per month [UK]

Tesco supermarket in the UK said today that it will introduce the iPhone 3G and 3GS on Monday December 14 for £20 a month based on a 12 month contract. The catch you ask? The iPhone will cost you at least £222.

News broke last month that Tesco was planning to introduce the iPhone before Christmas but many had assumed the supermarket would offer monthly contracts similar to those of O2 and Orange. Tesco confirmed today that it will offer the iPhone 3GS with £60 worth of calls and texts a month (approx 150 mins and 300 texts) for a monthly cost of £20. The 16GB iPhone 3GS will cost customers £320 up front based on a 12 month contract or will be offered free on an unlimited calls and texts contract which lasts 24 months and is charged at £60 per month.

Tesco also confirmed it will be offering the iPhone 3G and 3GS on pay as you go, the prices are identical to that of O2. It's interesting to see Tesco offering new contract options for the iPhone when you consider that Tesco uses O2's network. Tesco Mobile is a 50/50, joint venture between O2 and Tesco meaning that Tesco SIMs use the O2 network for calls and data.

View: Tesco iPhone

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