O2 are going to be offering a free upgrade to the 3G Iphone when its released, the only catch is that you have to sign another 18month contract.
This will be available 11th July:
Existing iPhone customers can upgrade early to the new 3G iPhone for free*
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.
*Best of all, the new 8GB iPhone won't cost you a penny on our £45 and £75 Pay Monthly tariffs for iPhone. And it's just £99 on our £35 tariff and new £30 tariff. This special early upgrade offer is only available online at o2.co.uk anytime from 11th July until 11th October 2008.
Take a look at our new Pay Monthly tariffs for iPhone.
Then just register your interest opposite and we'll drop you a line in early July to tell you what you need to do to be one of the first to get your hands on the new 3G iPhone.
http://www.o2.co.uk/iphone/existingiphonecustomers