O2 has finally revealed the pricing and availability for the Apple iPhone 3G on "Pay & Go" basis in the UK - details that were expected back in July.

The first time the touchscreen mobile phone will be available without a contract in the UK (well, officially, that is) both versions of the phone will be available to buy from 16 September.

The iPhone 3G 8GB for Pay & Go will be available for £349.99 and the 16GB version for £399.99.

These high prices (the iPhone 3G is now available from £99 with an O2 contract) are no doubt to try and put off too many people from buying the device and unlocking it for rival networks.

This price includes browsing and Wi-Fi for the first 12 months after you activate your iPhone 3G - at the end of which it will be charged at £10 per month.

The Pay & Go handsets will be available to buy from 16 September in O2 stores, The Carphone Warehouse and Apple stores.

O2 warns that the iPhone's popular "visual voicemail" and call merging are not available for Pay & Go customers.