O2 has announced a new range of tariffs for the iPhone 3GS, offering a free phone from as little as £15.50 per month.

Admittedly, this deal comes with no data and only 100 minutes per month, but it still represents a new price low for the older phone.

Traditionally, an iPhone price drop coincides with a bid to clear stock ahead of a new model emerging - it's interesting this should happen when the iPhone 5 is set to be delayed.

Budget busters

The price drops have only affected the two cheapest two-year deals for O2 though, indicating that the bubbly network is perhaps simply trying to appeal to a new market.

Apple's iPhone prices have always been strictly regimented across networks in the past, so any kind of price drop is always likely to raise suspicions that something is afoot - especially given a source close to O2 has told TechRadar that the iPhone 3GS is the best-selling handset on the network.

We'll be contacting the other networks to see if they'll be following suit with the price drops - if everyone starts trying to drop the prices, you'd have to thinks Jobs is readying a new phone sooner rather than later.