Vodafone is set to finally offer the iPhone 4 on pay as you go, undercutting Apple's prices.

The iPhone 4 will be available for £480 (for the 16GB version) and £570 (for the 32GB).

The additional sweetener for the deal is the offer of free data for a year if purchased before November 2010, with 250MB per month included in the PAYG package, with a further 1GB of Wi-Fi per month through BT Openzone.

Variety

"Customers asked us to make the iPhone 4 available on pay as you go, offering them a variety of ways to pay for their mobile internet access," says Mark Bond, consumer director for Vodafone.

Vodafone also dropped a hint it will be varying its data price plans for the iPhone 4 in the near future, with Bond adding: "We'll bring in additional options later in the year which will allow even greater flexibility."

As part of the announcement, users can also pick up the older iPhone 3GS for £385, but that's from the past. And nobody wants to live in the past.