The deal is exclusively available through Recombu.com and is available for just one week, but is it really as good as it sounds?
The first thing to say is that unlike previous mobile cashback offers which involve a complicated system of vouchers and the reclamation of money each month - which could end up leaving the user out of pocket if they weren't absolutely on the ball - this deal pays the full £169 cashback in one go.
Tom Hopkins, head of sales and partnerships at Recombu, said: "The cashback is being provided by Recombu and will be paid via PayPal after we have had confirmation from 3 that the customer has signed up for this deal.
"Once the customer has given us their details and purchased the deal on the 3 mobile site, the cashback will be paid as soon as we have verified a successful transaction."
The 3 One plan offers 2,000 minutes, 5,000 texts and 'all you can eat' data. This is available with an iPhone 4 16GB handset for £19 on a two-year contract costing £40 a month, or with a handset for £69 and a £35-a-month contract. Those who prefer a 32GB handset will pay £109 for the handset and £40 a month over two years, or £159 on a £35-a-month contract.
But what of 3's coverage and customer service? The mobile network did come last in a recent Which? customer satisfaction survey, scoring just 49 percent. But although it's coverage has also been criticised, Ernest Doku, an expert on mobile phones for comparison website uSwitch, said that the network "is good when it comes to 3G coverage, their 2G reception in the UK has vastly improved also".
He did however add that: "Consumers have been attracted by the network's strength of coverage – Vodafone was rated as the number one iPhone network by YouGov, as well as the fastest 3G network in the UK according to our own uSwitch StreetStats data." The other thing to remember is that this impressive deal exists most likely because of the impending launch of the iPhone 5, so if you're a sucker for the latest model it might be worth waiting.
For instance, Vodafone in partnership with uSwitch is offering a free iPhone 4, 900 minutes, unlimited texts and 750MB of data for £41 a month – as well as a promotional code (3MHPLR) giving three months' line rental at half price.