The Carphone Warehouse have today announced that they are now selling the 3G iPhone (8GB) for FREE on a two-year o2 contract, priced at £34.26 per month. This tariff gives you 600 any time, any network minutes and 500 text messages per month. You also get free data usage via World WiFi.
They are also giving away the 16GB models for free on the two-year £44.05 per month tariff, which gives you 1200 minutes and 500 texts per month, along with the data.
There are also some free iPhones to be had on the more expensive 18-month contracts.