Vodafone has announced it will start selling Apple's iPhone on January 14.

The company's tariffs have been designed to compete with rival network operators including O2 and Orange, and Vodafone is banking on its promise of better network quality to entice customers.

Tariffs offered by the mobile network provider will start from £30 a month on a 24 month contract, although customers will still have to shell out an extra £59 for the older version of the iPhone 3G. The new iPhone 3GS will be available free on a £45 a month contract.     

O2 overtook Vodafone as the UK’s largest mobile phone operator in 2006 and then pressed home its advantage by securing a two-year exclusivity deal following the launch of Apple’s iPhone. Vittorio Colao, Vodafone’s chief executive, has admitted the absence of the iPhone from its portfolio has had a negative effect on Vodafone’s UK business, according to a report by the Financial Times.

Guy Laurence, head of Vodafone’s UK business, said: “We started preparing our network over a year ago so that iPhone customers will really feel the advantage of being with Vodafone.

“We will offer an outstanding iPhone experience wherever our customers live, work and travel, delivering speed and reliability – something our customers have told us they really value.”