O2 has announced the long awaited iPhone 3G Pay & Go plan. Pay & Go plan will be available on September 16th, UK subscribers can purchase the handset and contract for Ł349.99 (8GB) or Ł399.99 (16GB).

These prices seem to be higher but they include unlimited browsing and Wi-Fi for the first 12 months after the phone is activated. After that subscribers can get it for Ł10 per month to keep browsing.

The announcement was expected months back but it finally came out yesterday. O2 is not offering visual voice mail on the pay and go deal which seems like not a big thing.