Gadget, Mobile Phone, Computer Blog

AT&T thursday said that it will start selling iPhones without those pesky two-year contracts beginning next week. Starting March 26th, is going to start offering the 8GB and 16GB iPhone 3Gs at a no-commitment price. These prices are $599 and $699 respectively.

No-commitment doesn’t mean unlocked, though-you’ll still have to activate the phone with AT&T in order to use the cell service (or, if you want to use it with a different provider, hack it). But it does mean that your service with AT&T is on a month-to-month basis with no early termination fee. Without activation, of course, the iPhone essentially operates as a marginally souped-up ipod touch. Or, you know, you could just buy an ipod touch.

An Apple representative did not immediately return a call seeking comment on whether a similar offer would be in place at Apple’s retail stores, which the AP was also unable to confirm.