AT&T to sell contract-free iPhone 3G

AT&T plans to sell the new version of the iPhone without a service contract for $400 more than the price with a two-year plan. The devices are set to cost $199 (8GB) and $299 (16GB) when they ship in the US 11 July – but only when you pick ’em up with a two-year contract. The contract-free equivalents will cost $599 and $699 and will be sold sometime “in the future,” AT&T said, as reported by Associated Press.
Contract free users can cancel service without incurring an early termination fee – but both contract and contract-free phones will be “locked” to work only on AT&T’s network.

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