I've never really understood the attraction of buying unsubsidised handsets, but they don't get much bigger than this...
At long last O2 has officially announced PAYG versions of the 8GB and 16GB iPhone 3G will go on sale at its stores plus those of the Carphone Warehouse and Apple on 16 September.
Pricing is naturally high with the 8GB model coming in at a hefty £349.99 while the 16GBer offers slightly better value for money at £399.99. Why so expensive? Clearly O2 has no desire to cannibalise its contract deals.
That said, O2 is throwing in 12 months free WiFi and data and considering many Windows Mobile based smartphones carry sim-free prices of £450+ it could've been worse. On the other hand it is key to point out PAYG iPhone 3Gs are not unlocked, just available without contract and so far no successful unlock has been developed for them.
Another thing to bear in mind is these models will not have visual voicemail or - more confusingly - call merging. Data settings will also need to be changed from their Pay Monthly defaults (guide under 'Activation' tab here) to PAYG confirming they are simply standard iPhone 3Gs just without a contract.
So will you take the plunge?