A better deal is on the way for UK iPhone owners, as O2 overhauls its tariffs for the handset less than three months after its launch.

Under a big pricing shake-up, O2 is set to offer around three times as many texts and minutes for those who sign up to its lowest £35 monthly tariff as of today.

Furthermore, the current £55 deal will be slashed to £45, while a £75 contract with 3,000 minutes and 500 text messages will be launched in a bid to make the tariffs more competitive.

Sally Cowdry, O2's UK marketing director, highlighted the Apple phone's selling success.

"The iPhone is already our fastest ever selling device and this added value will allow us to appeal to an even greater segment of the market," she said.

O2 has exclusive networks rights for the British iPhone, which was released in the UK at the end of last year after a high-profile media campaign.

The official UK sales figures for the touch-screen handset have not yet been released but chief executive Steve Jobs has revealed that four million iPhones have been shipped worldwide since the phone first went on sale in the US last summer.

© Adfero Ltd