“O2, Apple’s mobile phone partner in the UK, is to offer the iPhone 3G for free as part of a new contract deal available from next month,” Nick Spence reports for Macworld UK.

“The move is thought to help encourage new users to sign up and shift stock of 3G phones in preparation for a new iPhone rumoured to be available in the next few months including speculation on a new mid-range ‘nano-style’ device,” Spence reports.

“From 3 April, customers who sign up to the 24 month tariff can get the 8GB iPhone 3G for free at £34.26 per month and the 16GB iPhone 3G for free at £44.05 per month,” Spence reports. “On the 18 month contract the 8GB iPhone 3G costs £96.89 for the £34.26 per month, 16GB iPhone 3G costs £155.61 for the £34.26 per month, or £57.74 for the £44.05 per month.”

“‘The iPhone has been hugely popular with over one million units sold in the UK,’ said Peter Rampling, Marketing Director at Telefónica O2 UK. ‘This new 24 month tariff option will meet the demand of customers who are looking for added value in exchange for committing to a longer contract,’” Spence reports.

Full article here.