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AT&T confirms contract-free iPhone 3G

After a nine-month wait, AT&T says that it will definitely offer iPhones without a contract, according to a spokesperson for the company. They're still locked to AT&T, but at least you won't have to commit to two years of AT&T punishment love-ins.

Earlier today, we told you about unconfirmed evidence that AT&T planned to offer iPhones without a contract. AT&T spokesperson Michael Coe has now confirmed in a statement to the AP that "no-commit" iPhones will go on sale next Thursday, March 26.

As rumored, the 8GB iPhone 3G will sell for $599 and the 16GB iPhone 3G will sell for $699. So now you know: AT&T is subsidizing $400 of the cost of the iPhone if you're willing to commit to two years of service.

AT&T said it would probably offer a contract-free option for the iPhone after the initial July launch frenzy settled down. That was nine months ago, for those of you keeping score. Further, the "no-commit" option is limited to one per customer per active line, and they are still locked to AT&T. Still, for those who don't want to be saddled with two years of service, you now have another option.

Read the whole article @ ARS Technica

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