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apple_iphone_in_handTesco Mobile’s iPhone tariffs have been very popular,” says Lance Batchelor, CEO of Tesco Telecoms and Tesco Mobile. “We’ve now made them even better, with a lower upfront cost for iPhone and a new 12-month contract.”

Batchelor said customers tell Tesco they want a 12-month contract and this gap in the market has helped the company claim a unique space in mobile sales.

The new plans include: iPhone 3G 8GB for £100 / iPhone 3GS 16GB for £200 / iPhone 3GS 32GB for £275, with a new 12-month contract, paying £35 per month.

The plan includes unlimited texts, data and WiFi, and 750 free voice minutes each month and Tesco says it’s the best unlimited deal in the market with the closest comparable tariff costing £55 a month.

Customers can also choose a free iPhone 3GS 16GB, with unlimited calls, texts, data and WiFi on a 24-month contract for £45 per month.