According to a report on InfoWorld, the company intends to offer subscription-free iPhone, at a more expensive charge. The 8GB 3G iPhone will retail for $599, while the 16GB model will be $100 more expensive.

It’s worth noting that this is the first time that an American carrier chooses to sell a phone without tying it down with a two-year subscription plan.

However, don’t expect to buy the device and use it on your network of choice. Chances are that the iPhone will be free to use, but only on the AT&T network. According to Jupiter Research analyst Michael Gartenberg, iPhone users will be able to choose between a monthly plan and a pay as you go plan. The last one on the list is the “just use it for everything but the phone functions” plan, an option that would seem not very appealing, especially since we’re talking about a $600 device.

It’s true, the new iPhone comes packed with media player, camera and, hopefully, lots of third party apps. Still, it’s a phone, and we bet buyers would actually like to use it as one.