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iPhone 3G - PAYG is the way to go for a better deal...

Like many peeps, I've been seriously weighing up whether to trade in my iTouch for the soon-to-ship iPhone 3G but have decided against it for a number of reasons.

Rubbish entry-level tariffs (opens in new tab) for one thing, and then also the fact that the iPhone 3G still won't fully support MMS - that's picture messaging to you and me.

Finally, from what a developer has been telling me, the top data speed on the iPhone 3G is only around 700 Kbps, due to the fact that it only supports basic 3G data bursts, and not the HSDPA system that mobile broadband features.

This perhaps explains why O2 has been busy this past few weeks striking a deal with The Cloud, allowing O2/iPhone users access to The Cloud WiFi hotspots (opens in new tab), as well as those of BT Openzone and O2-owned hotspots.

This will give O2 iPhone users access to around 9,000 hotspots across the UK but, as we all know, WiFi is no substitute for 3G mobile data.

All is not lost, however, as a little bird tells me that the iPhone 3G will be sold for around 200 quid on a PAYG deal, so it should be possible to get a SIM-only O2 package like SIMPlicity (opens in new tab)for 15 quid a month and still use an iPhone 3G.

Unless you unlock the iPhone 3G for use on another network - but that's another story entirely....