O2 and Carphone Warehouse to offer 8GB iPhone free on £35pm contracts

O2 has announced that, from 3rd April, it's to offer the 8GB iPhone 3G for free on the £34.26pm tariff (what happened to the £35pm? Not that I mind paying less) and the 16GB iPhone 3G on the £44.05pm contract so long as customers take out a two-year (24 month) contract. This follows earlier rumours of a price cut.

Until now, UK users have only been tied in to an 18 month contract, although 2-year contracts are becoming more common as mobile operators try to squeeze as much out of customers choosing high-end handset as possible.

The Carphone Warehouse has announced an equivalent deal (via Electric Pig, I wasn't contacted directly).

It'll be pretty much the same deal for anyone only taking out the 18-month contract.

No official word on why the price has been cut. Although this week's announcement from Apple only covered the OS upgrade to 3.0, there's no reason to believe that Apple won't bring out another handset in due course. Does O2 know something we don't?

Full details of the pricing from O2 is available here.

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