Following the brief statement sent out yesterday confirming they still had the exclusive for the iPhone 3G in the UK, O2 has now revealed pricing for Apple's next-gen device.

O2 says it will get the iPhone 3G in the UK on 11 July and it will be offered for free on selected O2 consumer and business tariffs and that it will also be available for Pay & Go customers.

The release states: "Existing iPhone customers will be able to upgrade to the new iPhone 3G, taking advantage of the same great offers as new customers", with an "early upgrade offer" promised.

"The iPhone is already a phenomenal success in the UK and now we're making this revolutionary product more affordable for even more customers", said Ronan Dunne, CEO of O2 in the UK.

"iPhone quickly became our fastest selling device ever and with this new pricing, iPhone 3G is an unbeatable proposition."

Not only is O2 subsidising the cost of the handsets, but it has cut the price of the lowest tariff too, the 8GB model will cost £99 on a new £30 per month tariff and the existing £35 per month tariff. Consumers choosing either the £45 or £75 per month tariffs will get the 8GB iPhone 3G for free.

The 16GB iPhone 3G will cost £159 on the £30 and £35 tariffs, £59 on the £45 tariff and it will be free on the £75 tariff.

Both the 8GB and 16GB iPhone 3G will also be available for O2 Pay & Go customers with pricing to be confirmed in the coming weeks.

iPhone 3G will be available in the UK through O2, Carphone Warehouse and Apple sales channels.