Pay-As-You-Go 3G iPhone

The 3G iPhone will be available in a pay-as-you-go form to customers from later this month — but that's in the UK.

UK pay-as-you-go customers who’ve been wanting a 3G iPhone are in luck. From September 16, O2, which has the handset franchise for Britain, will be offering it, but the set itself will cost you – around $700 for the 8GB model and $800 for the 16GB.
The phone will be available at O2 and Apple stores, as well as at Carphone Warehouse.

O2 noted that the price “includes unlimited browsing and Wi-Fi for the first 12 months after you activate your iPhone 3G. At the end of the 12 months you can continue to receive unlimited browsing and Wi-Fi for just $20 per month. We’ll notify you before the end of the 12 month period by text and you can easily unsubscribe if you choose to do so.”

However, that “unlimited browsing” is subject to O2’s excessive usage policy.

Existing customers who upgrade to the 3G iPhone may be eligible for a reward, the company has said.

The phone will get a “favorite place” tariff, meaning that for $20-28 a month you get 500 minutes of calling to any UK landline or other O2 mobile.