Prices for O2’s iPhone 3G Pay as you Go (PAYG)After a delay of almost two months, O2 UK has today confirmed the official pricing for the iPhone handset on PAYG.

£399 will get you the 16Gb model, while £349 buys the 8Gb.

As part of the deal, you get free Wi-fi and browsing for the first 12 months – but it'll be £10 a month after that.

No word on how fair their fair use policies are, but £349 for a gizmo as easy to use as the iPhone, even for use as a PDA and web browser, doesn't seem that unreasonable.

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