News that's currently unconfirmed by O2, it's said the operator wants to clear stocks before the next, third-gen iPhone launches, rumoured for release in July.
Currently the iPhone 3G 8GB is available from free on £44.05 a month contracts while the 16GB iPhone is free only on a £73.41 a month contract.
Mobile reports that from May the iPhone 3G will be free on £35 a month contracts (or technically £34.26 tariffs due to the VAT cut) while it's suggested the 16GBer will go free on £45 tariffs.
