AT&T offering no-strings-attached iPhone 3G

AT&T is planning to offer the Apple iPhone 3G contract-free starting next week, but this offer doesn't come cheap.

AT&T will sell the 8-GB iPhone 3G for $599 and the 16-GB iPhone 3G for $699 without requiring buyers to commit to a two-year contract.

Contract-free iPhones are expected to be available March 26, according to a presented on Boy Genius' website.

The "no-commit" price is only available to existing AT&T customers.

"Customers purchasing the iPhone 3G at the no-commit price are not required to sign a two-year service agreement," the presentation said. "Device activation is not required at point-of-sale."

When the iPhone 3G launched last year, AT&T said it would offer such an option, but it never went through with it.

Currently, AT&T and Apple only offer the iPhone with a two-year contract. The subsidized prices come in at $199 for the 8 GB model and $299 for a 16 GB iPhone.