Vodafone has announced it will start selling Apple’s iPhone in the UK and Ireland early next year. The news comes a day after Orange revealed it will begin selling the smartphone later this year.

The company will sell the newer 3GS model as well as the older 3G model.
A report in the Telegraph claims that opening up the device to a third operator will instigate a price war, with as much as £100 being knocked off the price of the iPhone.

Vodafone currently claims about 25% of the UK mobile market but Vittorio Colao, Vodafone’s CEO said that not offering the iPhone was the key reason why the company lost 159,000 customers in its last quarter.

No details on prices, tariffs or an exact release date have been announced yet by Vodafone. Like Orange, the company has set up a page on its web site to enable potential customers to register their interest in the iPhone.

There will be a price war. Research shows that in every country where there is more than one operator selling it, it is cheaper,” said Ovum analyst Steven Hartley in the Telegraph report.

Hartley added that he expects the tariff for the iPhone to come down by £4 or £5 a month, knocking £120 off the price of a 24-month contract.