unsubsidized

UK iPhone carrier O2 has finally announced their pay-as-you-go contract prices for the iPhone 3G. Starting September 16, the device will be available without a contract from O2, Apple, and Carphone Warehouse. The unsubsidized price of the device will be £349.99 (US$630) for the 8GB model and £399.99 for the 16GB. Interestingly, this price includes Wi-Fi and data network access for 12 months after activation, and only afterward will users need to sign up for a £10 monthly subscription. However, Apple warns that Visual Voicemail and call merging will not be available on contract-free versions.
Thanks for the tip, Ash!

For those of you in the U.S. planning on holding out for that contract-free iPhone 3G that AT&T was planning on offering for $599/$699, there is something you should keep in mind. While the device will be offered to you unsubsidized and without the need to sign on to a binding contract, it will not be unlocked. You will still have to wait for a third party unlocking solution.