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Tesco Mobile to sell iPhone 3G and iPhone 3GS by Christmas

Tesco has announced it will be selling the iPhone online and in stores, raising our hopes for bargain iPhones to join the satsumas in our Christmas stockings

Soon we'll be able to pop a shiny new iPhone 3G or iPhone 3GS in our Tesco trolley along with our Christmas turkey. Tesco has announced it will start selling the iPhone in its phone shops and online through Tesco Direct.

Tesco Mobile uses the O2 network, so the Tesco iPhone may suffer from the lack of network coverage many have complained about since it came to the UK exclusively on O2. The company recently announced, however, that its network will grow by 1,500 sites over the next year, so things are looking up.

Tesco has its own pay as you go tariffs and monthly contracts though, so there will be even more choices for getting your iPhone goodness. Tesco couldn't tell us which tariffs the iPhone will be available on, but did confirm there will be pay as you go and monthly options.

Tesco is going up against O2 and Orange, and we've compared their tariffs. Vodafone is joining the iPhone fray in the new year, but Tesco told us it hopes to have the iPhone on its shelves -- somewhere between the baked beans and the taco shells -- by Christmas.

You can register your interest in Tesco's own-brand iPhone at the Tesco Web site.