PAYG iPhone, £100 offer and Free Upgrade Make Life Sweeter For O2 iPhone users

Only a few days to go till the launch of the next generation iPhone and the buzz (and the trailblazing rumours) is spreading all over the internet; it now looks almost certain that the iPhone will be available for £100 on contracts and existing customers could even get them for free.

Sources within the company told Macworld that 18-month contract would bring the cost of the iPhone to £100 wile new customers who signed up for the top of the range tariff would get the iPhone (and possibly subsequent upgrades) for free.

And as a bonus, even existing customers would be provided with a free mobile given that they sign for another 18-month contract with O2.

Another expected deal would see £269 iPhones still locked to O2 but without being tied to any contract; it would be interesting to see what tariff structure O2 will put in place for PAYG Data and voice services.

The news came after Pocket-Lint reported that O2 has been told by Apple to get ready for something big this Monday, 9th of June.

Expect all other network operators apart from O2 to be very, very nervous as they scramble to prevent customer haemorrhage.