Oh we love you boys and girls at O2, the latest news in via a source shown below shows that O2 are planning on a pay as you go (PAYG) Apple 3G iPhone plus free upgrades to existing iPhone customers.

We have already told you about the 3G iPhone could possibly be going on sale for as little as £100 in the UK (See Here), well now the latest news is hotter than ever with Macworld reporting tat the next generation device will be offer for free. On their site it says that quoting “UK sources,” is that the standard pricing for the iPhone will be £100 on an 18-month contract, but there are indeed more plans which will include free phones for high-tariff users, free upgrades and even pay-as-you-go deals.

Now if this speculation is true we can see Apple and of course O2 doing quite well this year, apparently the speculation is that O2 may possibly offer the 3G iPhone (iPhone 2) in the UK on a contract-free PAYG basis for the same price as the first ever iPhone at get this – £269. There are many more rumours such as O2 offering the iPhone 3G version for free to anyone that signs up for the most expensive tariff which is £75 a month and that existing iPhone customers will get the opportunity to upgrade for free if they sign up to another 18 month contract.

Game on, I am up for this.

Source – Macworld