O2 has announced that starting April 3 it will introduce a new 24-month tariff option for iPhone customers that will see a “free” iPhone 3G bundled with a lower minimum tariff than before. Customers signing up for the 24-month £34.26 tariff plan, which includes 600 minutes, 500 texts, and unlimited data and Wi-Fi hotspot service, will receive the 8GB model for free, while the 16GB model will be priced at £57.74. Customers will be able to receive either model for free when signing up for the £44.05 tariff, which includes 1200 minutes, 500 texts, and unlimited data and hotspot service. 18-month contracts for both tariffs will also be available, with the 8GB model available for free only with the more expensive plan, and prices ranging from £57.74 to £155.61 for other model/18-month tariff combinations. The 8GB model was previously only available for free with a £45 or higher monthly tariff, while the 16GB model was free with a £75 monthly tariff only.