I have an iphone 4 with Tesco and service up til now is ok. Though if something goes wrong with your phone and its hardware related go straight to apple.
Reason is I thought the phone I had may be faulty and tesco's service was no where near as good as apple. That said it turned out to be a network issue, again as they use 02 not Tesco's fault.
I took out a 30 day contract when they had the instore £10 offer. I am still in my first 7 week first month, no problems so far, decent hdspa speeds of upto 1500kbs, I like the online account and usage graphs. It seems to work well with LG GT540.
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