Vodafone steps up with pay-as-you-go iPhone 4

Vodafone has already recognised the iPhone 4 as a big seller

Vodafone has announced details of the iPhone 4 on pay-as-you-go tariffs.

The 16GB model is available for an upfront price of £480, including a monthly allowance of 250MB mobile internet and webmail and 1GB of Wi-Fi with BT Openzone.

This allowance is part of an introductory offer until November, and is likely to prove popular with customers who may otherwise rack up huge data charges.

Customers wanting the 32GB handset will have to fork out £570. An 8GB iPhone 3GS is also available for £385.

Many customers have been asking for the iPhone 4 to be made available on pay-as-you-go, according to Mark Bond, consumer director at Vodafone UK.

"We will bring in additional options later in the year which will allow even greater flexibility," he added.

Orange has been offering iPhone 4 on pay as you go since 24 June.

Customers buying an iPhone on Orange PAYG will automatically get 250MB of data each month, plus use of BT Openzone’s Wi-Fi network for 12 months. Its handset prices are the same as Vodafone's.

Other UK networks have yet to announce pay-as-you-go pricing details. O2 told V3.co.uk that an announcement will be made in due course, while Three is advising customers to visit a high street store or the network's web site.

Three is currently offering SIM-only deals for the iPhone 4, and plans to launch pay-as-you-go tariffs later this year.

T-Mobile was the final network to stock the iPhone 4 and is offering the handset only on a contract basis. The 16GB devices on pay-as-you-go are "coming soon", the firm said.

It remains to be seen how popular the iPhone 4 will be on pay-as-you-go, especially as most of the features require the internet and downloads from the App Store.

A possible price war could see operators trying to attract customers by including data bundles.