If you have been holding back for a 'pay as you go' iPhone 3G, then you will be glad to hear that O2 plan to release a Pay & Go iPhone 3G in the UK on 16th September.

The new iPhone 3G 8GB will cost £349.99 and the 16GB version will be a mere £50 more, priced at £399.99, inclusive of unlimited browsing and Wi-Fi for the first 12 months after activation.

After the first year, users will continue to receive unlimited browsing and Wi-Fi for a cost of £10 per month.

Available as of 16th September, from The Carphone Warehouse and Apple stores.