This may be more evidence that a new version of iPhone really is on the way ? Cellular carrier O2 UK is giving away free last-gen iPhones in England. 
New customers signing up for its £44.05 sterling or £73.41 sterling monthly tariffs get the 8GB model as a freebie. (The 16GB version's also free on the £73.41 sterling tariff).
Traditionally, carriers discount or give away old handsets to make way when the new versions are about to arrive, so the timing on this announcement has set tongues wagging. The widespread rumor is that the new iPhone hardware will be unveiled this June/July, and this just seems like further proof.
Planning your iPhone strategy
If you?re wondering whether to wait or take the plunge on a 3G now, I say wait if you can. If there's no launch this summer, you can pick up an iPhone then. But you?ll be kicking yourself for the next 2 years if you rush into the old model, and then the new one not only debuts, but turns out to be droolworthy.
Even if you?re somehow without a cell and tired of being incommunicado, you still have alternatives. Try a pre-paid phone temporarily. June's just a couple more months away, and it?ll get you over the hump for now.
Also, have you thought about reactivating your old handset? When I was between phones once, I downgraded myself to an old Nokia brick for a couple months, until I was eligible for an upgrade. SO worth it. Though ancient, the Nokia was a solid phone that still worked great, and I loved my new Sammy once I finally got it. I may have even loved it more because I sort of had to earn it.
Besides, if you get a look at the new handset and still wind up deciding on the old model, there might be a bigger inventory of them on the market, as early adopters shed them for the shiny new toy.
EDITED TO CORRECT PLAN DETAILS: The tariffs above reflect current schemes for 18-month plans. The new O2 plan is offered for 24-month contracts, with the 8GB model available for a £34.26 monthly tariff and the 16GB for £44.05. The new offer will be available from April 3.
