Number could reach the one million mark by April 2014.
Carphone Warehouse MVNO Talkmobile has said that offering more tariffs below £20 for devices such as the iPhone 4, 4S and 5, could encourage a contract customer base rise to one million by April 2014, reports Mobile News.
A number of new tariffs are said to be introduced in the hope that it will capitalise on an ever popular cheaper contract market. This will also be the first time the company has iPhone on offer.
The contracts will include £17.50 per month for an iPhone with 150 minutes, 5,000 texts and 200Mbs of data.
Cost of handsets vary depending on model, with the iPhone 4 costing £49, 4S at £149 and iPhone 5 for £299 on this tariff.
For £20, consumers can get the iPhone 4 for free with 250 minutes, 5,000 texts and 500Mbs of data. A £23 and a £30 plan are also available with prices for devices decreasing respectively.
Aman Bhachu, MD of Talkmobile, said: "As a business, we're committed to giving customers choice, making high-value smartphones affordable so everyone can benefit from the latest technology - something our customers are asking for. Our new suite of deals will get the latest mobile technology into the hands of our customers without breaking the bank."
Talkmobile released a statement saying that high-prices tariffs are putting people off buying a smartphone. According to Ofcom. 42 per cent of the UK have not yet embraced the latest technologies; something they may hope these new deal will change.