O2 has apparently decided to give their iPhone customers a break. The UK iPhone carrier has announced a free upgrade offer for all O2 subscribers with first-generation iPhones already in hand.
The UK carrier has sent out emails detailing the offer:
“To thank you for being an iPhone fan, we’re offering you an early upgrade to the brand new version when it launches on 11th July 2008. You won’t have to wait until the end of your existing contract, all you’ll need to do is agree to a new 18-month minimum term contract.”

O2 iPhone that sign up for an 18-month contract on the £45 tariff will get an Apple iPhone 3G 8GB for free. Those willing to hand over £75 every month will be allowed to choose an Apple iPhone 3G 16GB (why would anyone on this tariff would choose the iPhone 3G 8GB?). Customers opting for the £35 tariff or the all-new £30 will be asked to pay £99 for the 8GB variant of the iPhone 3G.
Subscribers with the £45 monthly plan will be offered the option to grab a 16GB iPhone 3G for an extra £59, while those that choose the £35 or £30 tariff will have to pay £159 for the larger-capacity iPhone 3G variant.
Of course, the unlimited data and WiFi allowance and Visual Voicemail features carry-over from previous O2 iPhone plans.