O2 has announced it will sell the iPhone 3G with a pay-as-you-go option starting with September 16th. Curious about prices? The 8GB version will sell for £350 or about $700 and the 16GB version will sell for £400 or about $800. Not that much of a difference between those two wouldn’t you say?

The next important issue is data right? After all that’s what makes the iPhone 3G special. For the first 12 months you will be offered unlimited WiFi, whatever that means. The default Sim will be linked to O2′s Favourite Place which means users will get free calls to other O2 mobiles or UK landlines. You can change pay as you go plans at any time.

Voice minutes come in different quantities depending on how much you’re willing to spend each month. 500 minutes come for a monthly £10-14 or $20-28, 1000 minutes come for a monthly £15-29 or $30-58 charge. Spending more than £30 or $60 in credit will get you unlimited minutes.

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