We knew last night that O2 would be launching the 3G iPhone on 11 July in the UK, but we didn’t have so much of a clue on pricing and whether the new tariffs would include unlimited browsing. Now we do and you can even get it for free and it’ll also be available on pay-as-you go “in the coming weeks.”

8GB version

The 8GB model will cost just £99 on a new £30 per month tariff (now we’re getting serious) and the existing £35 per month tariff. That means early iPhone adopters can upgrade for the £99 cost of a new handset - not a bad deal, though many will be wishing they’d waited.

Those choosing either the £45 or £75 per month tariffs will get the 8GB iPhone 3G for free.

16GB version

The 16GB iPhone 3G will cost £159 on the £30 and £35 tariffs, £59 on the £45 tariff and it will be free on the £75 tariff. Business tariffs are also available.

All tariffs continue to include free Wi-Fi browsing via The Cloud and unlimited data. “All customers will continue to receive unlimited data browsing over O2’s HSDPA network” says O2 in its news release.

"The iPhone is already a phenomenal success in the UK and now we're making this revolutionary product more affordable for even more customers," said Ronan Dunne, CEO of O2 in the UK. "iPhone quickly became our fastest selling device ever and with this new pricing, iPhone 3G is an unbeatable proposition."

Again the iPhone 3G will be available from Carphone Warehouse as well as O2 itself.