O2 have annouced the prices for the new iPhone 3G S. You can get the iPhone 3G S ‘free’ if you sign up to a 24 month contract for £44.05 a month or more.

If you’re an existing iPhone customer wishing to upgrade you will have to pay out your existing contract as well as the pricing above. This is covered in my previous blog post O2 to charge iPhone 3G S upgraders up to £360 to end current contract.
The new iPhone allows you to ‘tether’ your iPhone to a PC or Mac and use it as a mobile broadband modem. The cost for this is £14.68 a month which seems a little high when 3 offer a pay monthly tariff for £15 a month with 15GB of data but you will have to cart a USB modem around with you. The iPhone 3G S allows you to ‘tether’ via Bluetooth which is rather cool.
Read more about the iPhone 3G S pricing at the O2 store
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