The contract-free iPhones in the States rumoured this week have been confirmed.
AT&T, the official iPhone operator in the US, is offering the iPhone 3G on a "commitment-free" basis.
The move is thought to be one that will help clear down stocks of the current iPhone model in preparation for the launch of the third-gen model, rumoured for summer.
AT&T will offer the new deals from next Thursday, although at a hefty premium. The 8GB iPhone will cost $599, while the 16GBer will be $699.
Here in the UK, O2 is rumoured to be preparing iPhone contract cost cuts in May for the same reasons.