Telecom Italia announced that they will offer the 8GB iPhone 3g for free depending on the rate plan chosen. In the official press release Telecom Italia said:
For contract customers, the 8GB iPhone 3G will be offered in subscription packages with an initial cost ranging from zero euros to 199 euros, depending on the tariff plan chosen,
All of the plans will include at least 1GB of internet traffic per month.
A separate report says that Vodafone will offer the iPhone 3G for between 0 and 199€ depending on the model and plan chosen.
These offers are similar to ones offered by O2 and T-Mobile in the UK and Germany.