O2 announce iPhone 3G pay and go prices

Pay & Go customers can now enjoy all the great features of the iPhone without a monthly contract.
The new 3G 8GB iPhone for Pay & Go will be available for £299.99 and 16GB for £359.99. This also includes unlimited browsing and Wi-Fi for the first 6 months after you activate your iPhone*.

At the end of the six months you can continue to receive unlimited browsing and Wi-Fi for just £10 per month. We’ll notify you at the end of the six month period by text and you can easily unsubscribe if you choose to do so.
You’ll also be able to choose one of our standard Pay & Go tariffs to use with your iPhone. The more you top-up each month, the more free minutes or texts you’ll receive.

* This offer is applicable to all new and upgrading customers who purchase an iPhone on Pay & Go until Dec 31st 2008. Unlimited data and Wi-Fi applies to use in the UK only, subject to excessive usage policy. Unlimited Wi-Fi is available at any of the 9,500 Wi-Fi hotspots from our partners The Cloud or BT Openzone.

This is much cheaper than I thought they were going to be, this is good news.

via O2