Early this morning, Vodafone Italy announced they will be offering a pay as you go (no contract) version of the 3G iPhone (following O2’s announcement for the UK) and have set an out of contract price of €499/€569 for the 8GB/16GB models, respectively. This is pretty steep; certainly higher than what we predicted, though if you compare it to other contract-free smart phones, it is competitively priced.

As of today there is still no news on the UK pay-as-you go pricing.