New 3G iPhone with no contracts?

On July 11th, at 8 AM, AT&T will be selling their new 3G iPhone. If you're eligible for a discount (if you have an AT&T contract), you can purchase the 8GB model for $199 and the 16GB model for $299. If you aren't eligible for the discount, you'll have to pay the early 'upgrade' price of $399 for the 8GB iPhone 3G or $499 for the 16GB model. That's a little much. I'd never pay $500 for a phone.

AT&T also says that a "no-contract" iPhone 3G will be available soon, at $599 for the 8GB version and or $699 for the 16GB version. That's not available on 7/11 but it will be soon.

So that's interesting, at least. If I was with AT&T I'd consider it. But I'm with Verizon so I've got the network.

- MX