Sure, O2 in the UK may be giving them away for free, but why quibble over a Euro-buck? That's what T-Mobile Germany is counting on as they announced that Apple's next generation iPhone 3G could be had for as little as €1 with a €69 a month contract. Want a 16GB model? Starts at €19.95 on a €89 monthly contract.
If you prefer more up front, less down the road, you can also pay your €169.5/€249.95 at the door and walk away with a tiny €29 contract.
Now why can't AT&T -- and closer to (my) home Rogers -- learn from the Europeans?!?