Free iPhones From O2.... Where's The Catch?

You will soon be able to get iPhones for free, provided you fork out either £45 or £75 per month; O2 has published a new tariff list to mark the release of the new iPhone and sees the introduction of an entry level £30 monthly contract.

However, O2 was smart enough to make sure it is as popular as a Nokia fan ranting about iPhones in front of Apple's Regent street store; with a measly allocation of 75 minutes and 125 texts, customers would soon be lingering for the slightly more expensive £35 monthly offer wiith 600 minutes and 500 texts.

Add £10 extra per month and you get twice the number of minutes, perfect for heavy users; the top of the range iPhone package, the £75 one, gives you a free 16GB iPhone complete with a whopping 3000 minutes.

You will still be tied in a 18 months contract as well as enjoying the pleasures of unlimited data and Wi-Fi - through BT Open Zone and The Cloud Hotspots - as well as Visual Voicemail.

The new iPhone will also be available on Pay as You go although not much details has been published.

Existing customers will also be able to upgrade to the new iPhones (and probably resell the existing ones) simply by signing for a new 18-month minimum term contract.