AT&T confirmed today that the apple iPhone 3G will be available without a 2 year contract.

These contractless iPhone’s will be available for $599 for the 8GB or $699 for the 16GB model. But there’s a catch, even though there will be no contract the phone will still be locked so that you can only use it on the AT&T network.

You  will still have to sign up for an iPhone account with AT&T. Although what you could do is cancel your plan and only have to pay for activation fees and a month of service. But all you would be left with is a really expensive WiFi device.

If you really want to you can always jailbreak the iPhone and try to unlock it but, honestly would you really be willing to chance turning that phone into a $700 paper weight?

CNET’s Tom Krazit tried to contact apple to see if the same offer would be available in he apple stores. But unfortunately apple did not respond. So your only way of getting this deal is to buy your iPhone at your local AT&T store.


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