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Tesco Value As iPhone Tariffs Unveiled

Gordon Kelly


Tesco Value As iPhone Tariffs Unveiled

If you were disappointed that the Orange iPhone price plans differed little from the widely criticised O2 tariffs then you'll be rather happier after reading what Tesco has to offer...

Following the surprising news the supermarket chain had secured iPhone contracts last month, it has announced availability will begin from 14 December with far more diverse pricing. All these options are shown below, but the key points are the O2 virtual network becomes the first retailer to supply the iPhone on a 12 month contract as well as the first to provide a plan with unlimited calls and texts.

Notably, users can nab an iPhone from as little as £20pm for 12 months, though that leads to hefty handset prices of £222, £320 and £407 for the iPhone 3G, 16GB 3GS and 32GB 3GS respectively. This provides £60 worth of calls and texts, charged at 20p per minute and 10p per text though these costs are halved for your favourite five numbers.

Taking the other extreme, a 24 month £60pm deal sees both the iPhone 3G and 16GB 3GS come for free (so why bother with the former?) while the 32GB 3GS is just £50. These plans all come with unlimited calls and texts (a £500pm fair usage policy applies) plus the usual flat rate data (we're waiting on an actual figure).

Where Tesco doesn't differentiate much is in the pre-pay sector where Apple restrictions see it priced virtually the same as O2 and Apple with the same free 12 months of web and WiFi provided.

In sum, I'd quite like to see 18 month options as a half way measure, but given Orange and O2 already have this we have to applaud Tesco for doing something totally different. Your move Vodafone...


Tesco iPhone Product Page


December 10, 2009, 7:56 pm

"Where Tesco doesn't differentiate much is in the pre-pay sector where Apple restrictions see it priced virtually the same as O2 and Apple with the same free 12 months of web and WiFi provided."

How can Apple possibly dictate this, surely that would essentially be price fixing and they can only suggest a price, if Tesco want to sell it at a loss, that is there business?

William Smith

December 10, 2009, 8:31 pm

So 200 texts or 200 minutes for £20 a month? and then the handset price as well. Not exactly good value either really is it?


December 10, 2009, 9:02 pm

And damned me for spelling 'their' wrong :(

Robert Elliot

December 10, 2009, 9:04 pm

Any word on tethering? That's what I really resent about O2... I want to tether maybe twice, three times a year, for small amounts of data, and I deeply resent the idea of paying £15 a month for the privilege. I shall be off O2 at the earliest opportunity and never come back - never mind the tariffs, the 3G coverage and even basic phone coverage is woeful.


December 10, 2009, 9:28 pm

@Robert Elliot

I have never had a problem tethering with my N95 8GB on O2 - and use it probably a couple of times each month for varying amounts of data when away from home.


December 10, 2009, 9:59 pm

@William Smith - no, it's 300 mins or 600 texts or a combination of the two, with your 5 favourite numbers at half that price. Not a bad deal for the (many!) people who use less than that.


December 10, 2009, 10:06 pm

The tariffs are still awful. The 12 month contract sounds good until you realise that you're paying £222 for the 8GB model. Not even 3GS. Plus whilst the contract may be shorter than O2, you're only saving about £4 a month over O2 similar tariff when you divide the price of the phone to each month of the Tesco contract.

What annoys me is all these tariffs from supposed "competitors" are simply reworked tariff structures that end up giving the same profit cut to O2.

E.g. Longer contract = Deferred costs. Shorter contracts = Higher upfront costs

Robert Elliot

December 10, 2009, 10:12 pm

Tethering is priced separately for the iPhone on O2. This article is about iPhone pricing.


December 10, 2009, 10:25 pm

@Kaurisol I'm not sure if the tethering charge is for all of O2 or just the iphone. Anyone?

mohammad Rahat

December 11, 2009, 1:02 am

If you are apple lover then you will like this new apples tablet http://www.domesticutilities.c...

Coming back to Tesco so i think tesco is going to make good money out of it because Tesco's contract is not hard to get and even people with low scoring can get tesco contracts. So good luck to you TESCO - So many people will enjoy this christmas with Tesco's customer services


December 11, 2009, 2:22 am

What a load of tosh.

What doesn't make sense to me is that iPhone on PAYG/Sim Free is priced similar to top end smartphones £400-£500 but on contract Apple wants to rip you off. You can get a top end smartphone (£500) for free on 18 months contract for £35 or less per month but with the iPodBasicPhone you are charged ridicolous amounts.

Thank god I've never wanted one.


December 11, 2009, 4:13 am

Yuk. Over £200 for an 18 month old phone and then £20 a month on top of that? No thanks.


December 11, 2009, 5:18 am

@Simon: the problem with iPhone tethering compared to pretty much EVERY other phone is the program used to tether. iPhone uses iTunes to tether, which then "calls home" so to speak to tell them that it's being tethered. All other tetherable phones just share their connection so the network just "sees" a phone using the data plan, nothing more! A similar thing happened with the activation step. Name another phone that you have EVER had to connect to a program on a host computer in order to authenticate through a specific network...

That's how I understand it anyway, correct me if I'm wrong.


December 11, 2009, 4:32 pm

just add a fiver to your monthly bill to add tethering. Apple just see them coming every single time


December 11, 2009, 5:23 pm

Worth remembering that, unlike most other phones, the iPhone does have a healthy S/H market - it is an iPod Touch underneath. I love my Touch (1st Gen) but will almost certainly go for a iPhone '4G' next Summer (64GB with luck!) and keep it for at least 3 yrs. If you think of it as an iPod as well, then these tariffs make sense to me.


December 15, 2009, 12:35 am

So where they? I've been checking the website(s) all day and it still says 'Coming Soon'! Anyone got one from a store?

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