A couple of carriers have announced that the iPhone 3G will be available for free or for as little as 1€. O2 in the UK will offer the 8GB iPhone 3G for free with a £45 or £75 18 month contract. The 16GB model is free with a £75 18 month contract. With the £30 a month plan, the 8GB iPhone will cost £99 and the 16GB iPhone 3G will be £159.
T-Mobile in Germany will offer the 8Gb model for 1€ with a 69€ 24 month contract. The 16GB iPhone 3G will be 19.95€ with a 89€ 24 month contract. With the base 29€ a month plan, the 8GB iPhone will cost 170€ and the 16GB iPhone 3G will be 260€.
In the UK 18 months at £45 is £810 and in Germany, 24 months at 69€ is 1656€ both of which are a pretty penny. This compares to £639 for a £30 18 month contract and £99 for the 8GB iPhone 3G. That’s a difference of almost £200, of course you get a lot less minutes with the £30 contract. So the value of these offers will depend upon your usage. If you only use a limited number of phone minutes a month it may be worth paying £99 for the iPhone and paying less per month.