While O2 in UK is offering the 3G iPhone for free with their £45 and £75 tariffs, T-Mobile will be offering their 3G iPhone for 1 Euro with their €69 per month contract rates. Highest price that European customers can expect to pay for the 3G iPhone with a T-Mobile contract is €250 for €29 contract.

So it's a race for the cheapest 3G iPhone. I wonder if we'll ever get to see a really "cheap" 3G iPhone without any fine prints.