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.
AT&T plans to start selling the no-contract iPhones to existing customers this Thursday. Currently, a subsidized 8GB iPhone 3G costs $199 but requires a two-year contract.
No word yet from Apple on whether or not they plan to follow suit and offer the same deal.