O2 will be offering free upgrades to existing owners of the iPhone to the new 3G iPhone.

From the O2 Website
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.










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