The Nexus One might have just been released but O2 has had a secret weapon ready to face it; the iPhone 3G can be had SIM Free and legally unlocked, direct from O2, for as little as £364.
How to get this is quite simple. First you need to buy a Pay As You Go iPhone 3G which cost £349 from O2. Alternatively, you will have to fork £449 for the 16GB 3GS and an additional £100 for the 32GB model.
You will be charged a mere £15 for the transaction. Users wishing to unlock their iPhone will lose the free Web & Wi-Fi Bolt On that normally comes with the phone on PAYG.
It will take up to 14 days for the iPhone to be unlocked and O2 will send a text to confirm that the unlock took place. O2 says that the customer will only need to place the non-O2 SIM, start iTunes and connect the phone to the computer.
You would therefore be able to get the iPhone 3GS unlocked for £464 (16B) or £564 (32GB).
How does that compare with the trade? Well Play.com, not exactly the most expensive online retailer around, charges £460 for the iPhone 3G 8GB, £716 for the iPhone 3GS 16GB and £820 for the 32GB version, savings of up to £256.