O2 will release the iPhone 3G on a pay-as-you-go tariff on 16 September, the carrier has just announced. The 8GB version of the phone will cost £350 - just £50 less than the 16GB model. It'll be sold by O2, Carphone Warehouse and Apple.

O2 said that the purchase price includes a year's unlimited browsing - an "excessive usage" policy still applies - after which buyers will have to cough up £10 a month for it. Or upgrade to the next iPhone, if the line continues to be refreshed annually.

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