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3G iPhone to be free?

3G iPhone to be free?

Speculation that O2 and AT&T subsidies could see customers walking away with free phone on a contract

Rumours are circulating that UK mobile phone operator O2 is considering subsidising the upcoming 3G iPhone - a move that would see customers picking up the phone for free if they sign up for a contract, TechRadar reports.

The site claims that O2 was moved to reconsider its current policy following the massive sales spike that accompanied Apple’s discounting of the iPhone from £269 to £169.

There are apparently also concerns that the recent uptake will mean that the potential customer base for the new machine will be smaller than that of the current model.

It is said that AT&T, the exclusive iPhone carrier in the US, is considering a similar move on the other side of the Atlantic.

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Tags: apple , o2 , 3g , at&t , free , subsidies , iPhone