Recently we reported
that there was talk about AT&T offering the iPhone 3G without a contract. We can tell you that the story is true. Staring on March 26th, AT&T will be happy to sell you an iPhone 3G without a contract. However, in return for that flexibility, the cost of the phone will rise by $400 to $599 for an 8GB model and $699 with 16GB of storage. The move follows up on a promise made by AT&T back when the 3G version of Apple's touchscreen phone was launched last July. At the time, the carrier said that it would sell some iPhones off contract, similar to how the device is sold in some other countries. The models will still be locked to AT&T and the company requires that you sign up for a $30 monthly data plan before they will activate the handset. Apple has been selling the iPhone itself through its web site and at its stores, but they would not comment on whether they would also sell the device without a contract.