No price war for Vodafone?
UK residents will soon be able to enjoy a free Apple iPhone when they sign up for a two year contract with Vodafone starting January 14 2010. For a mere £35 a month, users will relish being new owners of a spanking new iPhone as long as they stay customers for 24 months.

Consumers however, are a tad disappointed over the price because they were hoping for a more competitively-priced package from Vodafone. We think people are generally waiting for a more exciting deal from Vodafone as the newcomer to the iPhone scene (after O2, Orange, and Tesco Mobile) sealed the dealt to offer the sought after device in September. This happened only 24 hours after Orange announced that they too were eligible to sell the iPhone. Previously only O2 had exclusives rights as the official vendor to sell the iPhone.

While Orange and O2 both tried to seduce users with their strength in 3G networks, Tesco Mobile made a worthy opponent in the iPhone price war as they aggressively promoted the iPhone to eager consumers. At £20 a month, who won’t be attracted?

Loyalty rewarded
To reiterate its promise of offering quality service and uncompromised dedication to its customers, Vodafone took the initiative to reward loyal customers who have not jumped ship. When and if they registered interest before the official launch, they will be rewarded with free calls to Vodafone users for as long as their initial contract lasts. This means that not only they will be getting the iPhone on a network they can rely on, users will also enjoy value for money services not offered by other operators.

The numbers game
Although the older 3G iPhone has been offered as low as £20 a month (by Tesco Mobile) most consumers will likely want to shell out more cash for the advanced iPhone 3GS. The 16GB version goes for £800 when consumers sign up with Tesco Mobile and £869 from Vodafone. Price over quality? You decide.

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