Orange Giving iPhone 4 For Free on Two-year Contracts

Orange will no longer be charging a one off £75 from prospective customers looking to buy the 16GB iPhone 4 handset on a two year, £50 per month contract.

The total cost of ownership of the handset during the whole period falls to £1200 and to make the deal even better, Orange is giving away 50 picture messages and a free Orange Sat-nav (ed : you can always go for Skobbler if you don't like it).

For the price, you get 1200 minutes, unlimited texts and 500MB worth of mobile data.

Orange has also finetuned the rest of its tariff table. For example it does allow users to swap some of their inclusive minutes for more data allowance, access to Orange maps and photo messages. It has also announced that it will cap its "unlimited" Wi-Fi at 750MB per month on BT Openzone.

3 UK still has the best value for money offer on the market when it comes to the iPhone 4. It charges £189 for a 32GB iPhone 4 on a £35 per month contract but gives out 900 anytime minutes, 5000 3-to-3 minutes, 5000 texts and 1GB worth of data.

Orange did not say whether it will reimburse the £75 those who have preordered the phone but has yet to receive the phone.