Now, O2 removes the hurdle for wider acceptance of iPhone 3G in U.K. Do you wish to buy an iPhone without a contract, you will be able to go for it very soon.

The prepaid iPhone 3G’s will be available from 16th September at Apple Stores, O2 and Carphone Warehouse. However, the only drawback is it’s going to cost you more. The 8 GB model will cost you ($631)£350 and 16 GB version will cost you ($721) £400, this is expected of course.

If you pay between ($18 to $25) £10 and £14 per month it will earn you a bonus of a call time worth 500 minutes to any O2 cellphone or UK home phone.

You will also have free Internet access for a year, provided you are within U.K. and in addition this will include O2 Wi-Fi and 3G. However, the service will cost you £10 a month later on. The plan doesn’t include text messages. Calls which exceed the prepaid amount will cost £ 0.05 a minute.

Looks like O2 will be drawing more customers by the introduction of it’s “Pay & Go” plan.