Looks like my worst fears for the new 3G iPhone are comming true… It will be contract only, with no activation at home… SiliconReplublic.com are reporting that O2 are doing new pricing for the iPhone, all based on contracts. quoting their site:

*The 8GB iPhone 3G will cost €49 on the €100 monthly iPhone tariff, €99 on the €65 tariff and €169 on the €45 tariff.</p>

The 16GB iPhone 3G will cost €129 on the €100 monthly tariff option, €169 on the €65 tariff and €299 on the €45 tariff. </font>
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thats looking bad. they wont sell you an iPhone for EUR49 assuming your going to pick the EUR100 a month contract when you get home. they want proof, and the best proof is in store… :( mind you, i did see some interesting news on the UK O2 Store: PrePay iPhone comming soon! no contract signing. i like that.