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On the cheapest £25 per month tariff (24 months), the 16GB iPhone 4 will cost £279.

For the same package over 18 months, costing £30 per month, the handset is £70 cheaper.The total price over 24 months is therefore £879, while over 18 months, it’s £749.For the 32GB model, it’ll cost £323 on a 24-month contract, or £299 on an 18-month deal. Again, total prices are £923 and £839 respectively.

We expect the most popular will be the £35 per month, two-year contract where you get 600 minutes, international traveller service and 500MB of data. This means you’ll pay £119 for a 16GB iPhone 4 (cheaper than Orange’s price of £169), or £209 for the 32GB model (again, cheaper than Orange which charges £269). Handset prices remain the same if you opt to pay £40 per month over 18 months, but there’s no option as with Orange to get the same package over 18 months for £35 per month.

Unlike Orange, which offers ‘unlimited’ data (which realistically means 750MB per month), O2’s plans include only 500MB, unless you pay more than £35 per month. This will allow you to watch roughly two YouTube videos or visit around 50 ‘content rich’ websites per day.