O2 have announced that they will be releasing a Pay As You GO (PAYG) version of the Apple iPhone from September 16th.
The new PAYG iPhone will be available directly from O2, Apple and also Carphone Warehouse.
According to O2, the new iPhone 3G 8GB for PAYG will be available for £349.99 and the 16GB version for £399.99.
This also includes unlimited browsing and Wi-Fi in the UK for the first 12 months after activating the iPhone - after this time, it will cost £10 per month.
According to The Register:
the handset will come with a SIM initially linked to O2’s Favourite Place tariff, which is pitched at callers using their mobile from a given location - they get free calls to other O2 mobiles and UK landlines.
Additionally, the ability to switch tariffs will be available for users.