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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