Tesco Mobile cuts cost of unlimited iPhone tariffs

Tesco Mobile has today slashed the cost of its premium pay monthly iPhone tariff by 25 per cent, resulting in a lower-then-ever monthly fee of £45.

Whilst the iPhone tariffs remain relatively expensive when compared to other handsets, Tesco Mobile now offers the cheapest unlimited iPhone package.

The network's Unlimited tariff - offering unlimited minutes, texts and web on a 24 month contract - had previously been charged at £60 per month but its new £45 fee makes Tesco Mobile comfortably cheaper than the competition. O2 currently offers an unlimited 24 month tariff at a rate of £60 per month, whilst Orange charges £75 per month with inclusive mobile data across the continent.

However, despite paying £45 per month over a 24-month period, Tesco Mobile customers will still be charged £79 for the 32GB iPhone handset.

Many consumers had hoped that Tesco's arrival in the iPhone marketplace late in 2009 would result in a price war, but whilst that never materialised, the UK's largest retail chain's revamped tariffs might help lure new customers ahead of the arrival of iPhone OS 4.

Tesco details its new tariffs as follows: