Word is spreading quickly across the blogosphere that the iPhone is now available contract free.  I'm sure everyone's first thoughts are "great now I can get an iPhone on T-Mobile."  Unfortunately, even though the devices will not require any service contract with AT&T, they are still locked to AT&T's network and that means you'd have to jailbreak and unlock your iPhone (at your own risk) in order to get it working with a T-Mobile SIM card.

The price for an iPhone 3GS off contract is $499 for the 8GB variant, $599 for the 16GB, and $699 for the 32GB phone.  It's interesting that Apple is deciding to do this now, especially since the Nexus One just became available (or announced for the near future) on all four major US carriers.

Who's going to buy a contract-free iPhone tonight?  Sound off below!

Via Engadget, MobileBurn