After much rumour mongering, O2 has announced the pricing for the iPhone 3G for those wishing to use it on Pay-as-you-go.

The 8GB iPhone 3G will cost £299.99 and the 16GB will come in at £359.99.

Both iPhone models include 6 months of unlimited browsing and Wi-Fi, benefits that will cost pay-as-you-go customers £10 per month afterwards.

[Update] O2 has pulled the page containing the prices as of 23.00 BST on Wednesday June 25.