O2 originally had the iPhone 3G as a time exclusive device for quite some time. “Quite” is an understatement for two whole years.

With Orange UK recently releasing the iPhone and Vodafone announcing that they too will be having the device on January of 2010, O2 has just not lost exclusivity, but also price control. Just a week prior to the Orange launch of the iPhone, O2 started coming up with new promotions for the device. Competition can truly be a good thing.

Tesco will be boosting O2’s market share on the iPhone as they too have announced that the Apple iPhone will be available through them as well. Interested buyers may sign up at the pre-registration page at the Tesco website though there are still no details regarding the specific release date.

The official press release from Tesco dated November 25 states that the Tesco will be releasing Apple iPhone products “through its joint venture partnership with O2”. Specific details regarding this are still unavailable, but it is confirmed that all iPhones to be sold by Tesco will be under an O2 pay-as-you-go or monthly tariff plan.

The bunfight for iPhone crumbs in the UK continues with the announcement that Tesco Mobile, the queen of the reasonably-priced pay-as-you-go mobile market, will ‘shortly’ be selling Apple’s golden egg.

The supermarket giant will join the original Miss iPhone UK, O2, which held the exclusive rights for the past two years; first runner-up Orange which started selling the iphone this month; and second runner-up Vodafone, which will have to wait in the wings until after Christmas to get its telecom tiara.

All this new iPhone competition might suggest the UK consumer will be quids in as a price war erupts, and certainly Tesco’s reputation for value would lend this some credence. But the evidence is not encouraging.

Apple keeps a tight reign on its retail price. So the price tag for off-the-shelf phones without a contract is likely to remain high (£538.30 from O2 or £549 from Orange for the 32GB 3GS ). And because the telecom operators have to absorb whatever subsidy they offer on the phone, the contract prices leave little room for manoeuvre.

In a blow to rivals Orange and Vodafone, British supermarket giant Tesco has snagged a deal to sell the iPhone before Christmas in partnership with carrier O2

Tesco (TSCO.L) is turning the screw on rival mobile phone shops by offering the Apple (AAPL) iPhone in its stores and online over the coming weeks. The supermarket's telecoms division, Tesco Mobile, said yesterday that it would introduce the iPhone 3G and the latest 3GS model in the UK before Christmas as part of its joint venture with the network provider O2 (TEF).

Tesco is the fourth company to sign a deal to sell iPhones in Britain following O2 and Orange (FTE), which already sell the iconic handset. Vodafone (VOD) has plans to offer the device from the new year but has yet to agree a date.

A spokeswoman for Tesco Mobile said: "It is a coup for us. Our absolute aim is to get this into stores and online before Christmas."

Although a launch date has not been confirmed, Tesco Mobile's iPhones will be offered on contract and pay-as-you-go deals.