Mobile operator Orange has dashed UK hopes that increased competition will push down tariffs for the Apple iPhone, which was previously available exclusively on the O2 network.
Orange, which will begin selling the iPhone next week, has revealed that its tariffs will be similar to those of O2.
Instead of competing on price, Orange plans to attract customers with a higher quality 3G network to better support mobile internet access, according to the Financial Times.
Orange claims its 3G network covers 93% of the UK, compared with O2's 84%. O2 last month admitted its network had been stretched to the limit by the bandwidth-hungry iPhone.
Orange is also planning to double the talk time and number of free texts O2 offers customers on an 18-month contract.