No-contract IPhone on the Way

AT&T Mobility put some asterisks on its iPhone 3G pricing Tuesday but also revealed an interesting option coming in the future: an iPhone without a contract.

In the news release disclosing terms and monthly rates for iPhone 3G service plans, the carrier hinted at the upcoming offer without saying anything about when it will become available. Freedom will come with a price -- US$599 for an 8G-byte device and $699 for a 16G -- but this will mark the first time consumers in the U.S. are able to buy an iPhone without being tied down to a two-year contract.

The phone probably would still be locked for use only on AT&T's network, said Jupiter Research analyst Michael Gartenberg. But buyers could choose a pay-as-you-go plan for voice service -- there is no prepaid data plan from AT&T -- or just use the device as a media player and calendar and access the Web via its Wi-Fi radio. Unlike the slimmer iPod Touch, the iPhone has a camera and a small speaker. The numerous third-party applications coming to the iPhone later this month presumably also could be used without a service plan.

[via PC World.]