Updated - Which Apple iPhone tariff is right for you?

Updated March 2, 2010

O2's recent decision to offer new iPhone tariffs means that the marketplace for the shiny gadget has suddenly become a lot more interesting.

Indeed if you are an O2 early adopter who has an iPhone 3G or 3GS and is coming out of contract you can slice your monthly outgoings down to just £15 a month and keep all the perks such as unlimited data, Visual Voicemail and access to BT's wi-fi network of hotspots.

For just a fiver extra you also get all the flexibility of a 30-day contract - ideal if you're waiting for the mythical iPhone 4G which is due to arrive in June 2010.

But it's not just at the bottom end that O2 has made changes - it's introduced a raft of new monthly tariffs and also cut prices to the iPhone hardware - which is still pricy but not quite as extortionate as it was. O2 has also lifted its limit on texts to the 'unlimited' bracket - but has sneakily introduced a charge of MMS texts at the same time.

If you look carefully, though, you will find some unique offers for non-O2 users who don't have an iPhone. For instance, Tesco has brought the monthly contract cost of an iPhone down to £20 for the first time - albeit with very steep up-front charges for the handset. It is also the only carrier to offer a 12-month contract.

But before you all rush into your local superstore you should note that Tesco is a virtual operator that leases its network from… O2. Yes the same O2 that recently admitted that all the bandwidth being used by iPhone users was breaking its network. Ah well, Plus ça change…

So check out our take on the positives and negatives of all the various iPhone contracts and offers out there. And keep us posted if you hear of any changes or updates. Happy hunting!

Tesco iPhone deals

12-month, £20 per month Tesco iPhone tariff

24-month, £60 per month Tesco iPhone tariff

Tesco advantages:

• Only tariff that offers a 12-month contract and a new iPhone
• You get Club Card points on the purchase
• You may be able to buy the iPhone on credit rather than pay up front
• Half-price calls to 5 nominated numbers

Tesco disadvantages:

• Steep up-front cost of the handsets on 12-month contract (£222, £320, £407)
• Uses the O2 network
• No tethering
• No Visual Voicemail

Ideal for...

• The 12-month contract is perfect for someone who has a Club Card, makes calls to a small number of friends and wants a low monthly outlay.
• The 24-month unlimited contract is probably the best deal around for someone who makes a hell of a lot of calls and texts - it undercuts rival top-end contracts from Orange and O2 considerably.

Orange iPhone deals

Orange £30/month, 18-month iPhone tariff

Orange £35/month, 24-month iPhone tariff

Orange £75/month, 18-month iPhone tariff

Orange advantages:

• The 3G network coverage is better than O2
• You can 'downgrade' your tariff after 9 months
• Great value tethering bundles: £4.89 for 3GB/month
• Supplementary benefits, eg 2-for-1 Wednesdays, Magic Numbers

Disadvantages:

• 750MB fair usage cap on 3G data - but see note below about how much of a disadvantage this is
• 750MB fair usage cap on both The Cloud and BT Open Zone Wi-Fi networks (but how do they enforce this?)
• No Visual Voicemail (although this may change soon)

Ideal for...

• Orange customers wanting to upgrade to the iPhone with the minimum of hassle
• Film buffs who fancy 2-for-1 Wednesdays (and there's an app for that too)
• O2 users sick of dropped calls and slow data speeds in their area

Orange UK iPhone prices and deals

Vodafone iPhone deals

Vodafone £30/month, 18-month iPhone tariff

Vodafone £35/month, 18-month iPhone tariff

Vodafone £40/month, 18-month iPhone tariff

Vodafone £50/month, 18-month iPhone tariff

Advantages:

• All tariffs feature unlimited texts
• The £30/month 18-month tariff has the cheapest handset costs of all providers at that contract length and price
• Free Vodafone-to-Vodafone calls for the duration of your contract if you pre-order before January 12
• Reasonable tethering costs from £5/month for 500MB

Disadvantages:

• Still no Visual Voicemail
• 1GB data bandwidth cap (but again see note below)

Ideal for:

• Vodafone customers wanting to upgrade to an iPhone without hassle
• O2 users sick of dropped calls and slow data speeds in their area
• A heavy call and text user may find the £50/month, 18-month contract hits the sweet spot

Vodafone UK iPhone prices and deals

O2 iPhone deals

O2 £15/month SIMplicity 12-month tariff

O2 £20/month SIMplicity rolling 30-day tariff

O2 £30/month, 18-month iPhone tariff

O2 £35/month, 24-month iPhone tariff

O2 £75/month, 18-month iPhone tariff

Advantages:

• The cheapest monthly tariff if you own an iPhone
• Visual Voicemail
• No data cap on 3D data or Wi-Fi
• Free itemised billing on all monthly contracts
• Only network to offer SIM-only, rolling 30-day deal
• Preferential treatment at O2 music events and venues

Disadvantages:

• Patchy 3G and call network coverage - possibly due to so many iPhones

Ideal for...

• People who've finished their initial contracts and are waiting to upgrade to the iPhone 4G - Simplicity 20/15 is the perfect option
• Heavy 3G data users an elusive O2 network sweet spot
• People who really need Visual Voicemail
• People who've bought a second-hand iPhone that's locked to O2

O2 UK iPhone prices and deals

Check out our complete list of every iPhone contract tariff in the UK

Check out the latest iPhone deals and prices in the UK

Note from the author: A monthly data cap of 750MB or 1GB may seem restrictive at first. But I've owned an iPhone 3GS since it went on sale in July and since then I have downloaded a grand total of 1.3GB of data over the 3G and EDGE connections. That works out at a monthly total of just 220MB. Would I swap to a network with a 750MB cap if it could guarantee better 3G connections and fewer dropped calls? In an instant...