iPhone – free on O2 if you go for a pricey contract; pay as you go available too

O2’s put up its iPhone 3G prices: free on £45 per month contract or £99 on the cheaper tariffs, including a new £30/month plan. There’s a pay as you go version coming too – teenagers will love that – and existing iPhone customers can get a free upgrade if they’re willing to take the £45 contract.

Those prices are for the 8GB version.The 16GB is £159 on the £30 and £35 per month plans, £59 on £45 and free on the £75 per month plan. Pay as you go prices aren’t up yet.

If you’re upgrading, you’ll be able to pass your existing iPhone on:

We want to make sure you find a good home for your existing iPhone once you upgrade. If you’ve a friend or family member already on an eligible O2 tariff, they’ll be able to transfer to one of our new tariffs for iPhone. If they’re not already with O2 or on an eligible O2 tariff, they could get one of our new iPhone Pay & Go SIM cards.