The offer is available from tomorrow on all O2 iPhone tariffs, with the 16GB iPhone remaining priced at £329.
There will still be three O2 tariffs for iPhone customers, starting at £35 per month. Each tariff includes unlimited data browsing and free access to The Cloud's 7,500 Wi-Fi hotspots.
There's no doubt that the iPhone has been a breath of fresh air for the mobile market and grabbing exclusivity has been a great coup for O2. The operator says that 60% of iPhone customers are new to O2 while iPhone customers spend on average 30% more than other Pay Monthly customers.
The special offer is subject to stock availability.
Click here to to O2's website