Back when the iPhone first launched in the UK, many users were disappointed by the comparatively high price Apple and carrier O2 were charging.  One of the key messages from the iPhone 3G announcement, then, was the confirmation that the same $199 (or equivalent) entry point would be matched in all markets.  O2 have just unveiled their monthly contract details, including confirmation that the carrier will be subsidising the 8GB iPhone 3G to free on certain contracts, as well as revealed that for the first time the handset will be available on pay-&-go prepay.

O2 are yet to release details of pay-&-go iPhones, but we do know the pricing for the contract version.  A new £30 plan has been introduced, which means there are now four contract choices (£30, £35, £45, £75); on the two cheaper plans the iPhone 3G will cost £99, whereas on the two higher-priced plans it will be free.  That assumes a new eighteen month contract.

All tariffs include unlimited browsing, unlimited Wi-Fi access, visual voicemail and reduced roaming rates with O2’s International Traveller Service.  Existing iPhone owners will be able to upgrade to the new 3G model without penalty, as long as they sign up to a new 18-month contract; they’ll pay the normal price for whatever tariff they choose.

via Ars Technica

In the last several weeks, rumors and speculation about the upcoming 3G version of the iPhone have greatly multiplied. The reasons for this sudden increase in noise could could be any number of things, but seasoned Apple-rumor-followers know from experience that an increase in chatter almost always indicates that something is about to hit, regardless of whether any one chatterer was entirely accurate.

So, we know it’s coming, but what else? Here, we try to differentiate between what we know, what we don’t, and everything in between.

What we know

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Editor’s Note: The following article is reprinted from Macworld UK.

Germany’s T-Mobile generated a wave of media attention with its decision to subsidize the purchase price of the iPhone in a new €99 (US$155) deal, announced last week, but Apple’s U.K. partner, O2, has no immediate plan to emulate the discount.

T-Mobile’s plan has been seen as predicated by one of two reasons: to stimulate flagging sales of the device in Germany, or to clear stock from the network’s channel, pending the coming release of a 3G-supporting model of the device.

Apple’s German iPhone network partner has been selling the 8GB model of iPhone for €399, but reduced the cost of that model to €99 late last week.

O2 has not chosen to emulate T-Mobile’s move, at least, not yet. An O2 spokesperson told Macworld UK:

“We regularly examine all of our offerings to ensure they remain competitive and meet customer demands. We currently have no updates regarding iPhone pricing.”

While this response leaves the door open to future price cuts on the part of Apple’s UK network partner, it does mean there’s no immediate price discount plan to be announced.

Apple launched the iPhone in Austria via T-Mobile and Ireland via O2.

iPhone pricing:

• Austria: 8GB €399, 16GB €499, monthly plans €39, and €55
• Ireland: 8GB €399, 16GB €499, monthly tariffs €45, €65, €100