UK supermarket and retail chain Tesco, which announced late last month that it would begin offering the iPhone through its existing cooperative venture with existing iPhone carrier O2. Today marked the first day of sale for the iPhone via Tesco, offering pricing plans beginning as low as 20 per month, albeit with hefty handset prices at that level.

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Tesco's 20 plan includes 60 of calls and texts at the current 20p/minute and 10p/text rates (with half-price charges to 5 favorite numbers) and requires only a 12-month contract. At the higher 60 plan that requires a 2-year commitment, customers can receive a free 8 GB iPhone 3G or 16 GB iPhone 3GS, or a 32 GB iPhone 3GS for only 50. Pay as you go options are also available.

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