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O2 and Apple plan 'free iPhone'

Report: New offers expected for UK market

O2 is planning to offer Apple's iPhone for free to new customers signing up to the operator's most expensive tariff, according to Macworld UK.

In addition to the free iPhone, Macworld says a series of additional offers are planned, including a new pay-as-you-go iPhone deal, under which customers would pay £269 for the handset, but wouldn't be tied to an 18-month contract.

Furthermore, those who already have an iPhone could be offered a free upgrade to a newer 3G model if they sign-up to a new 18-month contract.

See Macworld UK for more.

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