AT&T has confirmed it will start selling un-subsidized iPhone 3G hardware without a contract, only months before the release of iPhone 3.0. Both the 8GB and 16GB models will be available at full price, $599 and $699 respectively.

Pre-paid service will not be an option, as activation of no-contract phones will require an iPhone data plan, costing $30 monthly. Unfortunately for those interested in using the device with a different carrier, even the full price iPhone 3G hardware will still be locked to AT&T.

Apple held their widely anticipated iPhone OS 3.0 preview today in Cupertino, California. There are 100 new features on the way in the new operating system, which will ship this summer and cost nothing for existing iPhone users (iPod Touch users will pay $9.95 for the update).

Scott Forstall, the head of iPhone software development, described iPhone OS 3.0 as "a major update to the operating system." Here's a list of the features announced at the event:

The official CBS Sports Mobile NCAA® March Madness On Demand® application is available now from the Apple AppStore. For only $4.99 any college basketball lover with an iPhone or iPod Touch can view scores, news, schedules, brackets, and even live games.

When using a Wi-Fi connection free streaming video of ongoing games is available. The application also delivers live game audio over a 3G or EDGE data connection. All games from the first round until the NCAA® Championship are included, along with video highlights from each game.

Billed as an advance preview, Apple's March 17th event to discuss the iPhone OS 3.0 software and SDK is generating quite a buzz. Most speculation revolving around the event has rehashed old, tired rumors about features that have failed to materialize on the iPhone, however there are some new developments.

Two of the most interesting new firmware 3.0 predictions are reports of a revised SpringBoard and possible iPhone support for magnetometers. A update to the SpringBoard could include features to help organize multiple applications into folders or categories on the home screen. Magnetometer? Think digital compass, à la Android G1.