With rumors that Spain will be getting the 3g iPhone for as little as £100, it comes as little surprise that a new rumor has surfaced.  According to MacRumors, the 3g iPhone will be available in the UK on O2’s network ‘from free’ depending on the plan and commitment.  The standard price of the 3g iPhone will be £100 on an 18 month contract, but additional perks such as ‘free upgrades, free phones for high-tarrif users and pay-as-you-go-deals are expected’.  For O2 users looking to get their hands on the 3g iPhone with the pay-as-you-go service, you can expect to pay the same as the current generation iPhone £269.

While this is a lot to absorb so close to the 3g iPhone announcement, the rumors continue with O2 and the 3g iPhone.  O2 is expected to offer the 3g iPhone for free if you sign up for the £75/month contract and existing iPhone users will get a chance to upgrade for free if they sign up for another 18 month deal.  While none of this information has been confirmed, we can’t help but feel envious of our European friends.  The pricing stateside is expected to remain the same, but with Verizon and Alltel merging maybe At&t will find a reason to boost their subscriber count.  Possibly a discounted ($199) 3g iPhone might spark our interest to join At&t this month?