Apple [AAPL] has started selling a contract free version of the iPhone 3G and iPhone 3GS in the US. You can now buy an iPhone 3G for $499 or an iPhone 3GS for $599 and $699.
There is just one slight problem, the contract less iPhone are still locked to AT&T’s mobile phone network, which means you will have to use an AT&T SIM card or jailbreak your iPhone to use it on another mobile phone network.
This is similar to what Apple does in the UK, offering pay as you go version of the iPhone tied to a particular network, although there are more than one network to choose from in the UK.
You would think if you were buying a mobile phone at full price without a subsidy and a mobile phone contract you should be able to use ti with whichever mobile phone provider you want.
via Slippery Brick