However, this free offer doesn’t come cheap. The 8GB iPhone 3G will only be available to customers willing to switch to one of two rather expensive plans: $88 or $146.50 a month. As for the 16GB iPhone, this one will come packed with an even more expensive plan.
Companies get a better deal, with O2 willing to throw in the new iPhone in exchange for a 24- or 36-month contract.
According to Apple, an 8GB iPhone is supposed to retail for $199, while the 16GB model will be $299
O2 stated that it will start offering the iPhone 3G on July 11.