PAYG iPhone coming 16 Sept

O2 has announced that it will be selling the iPhone on a pay-as-you-go contract from 16 September.

The device will be available to buy from O2's stores, The Carphone Warehouse and Apple stores.

The 8GB version of the iPhone will cost £349.99 and the 16GB version is £399.99 and includes unlimited Wi-Fi access and web browsing for the first 12 months.

Thereafter, you can continue to get unlimited Wi-Fi and internet access for £10 per month.

If you pay a minumum of £15 per month you will get 1,000 minutes to any landline or O2 mobile. For £30 or more a month you'll get unlimited minutes to O2 mobiles and UK landlines.

O2 said that downloading 1MB of data in an EU country will cost £3 and the same amount of data in a non-EU country will cost £6.

Owners of the pay-as-you-go iPhone also won't be able to access the Visual Voicemail feature, which lets you see who has left you a message before you listen to it and fast-forward through the message.

Last week, the Advertising Standards Authority slammed an advert for the iPhone for "misleading" the public and banned the ad in question.

And an iPhone-related mystery was solved last week when a woman pictured on a device bought in the North of England was identified as a worker in a factory where the iPhone is assembled.

www.o2.co.uk/iphone/paygo