Reports confirm that the 3G iPhone will not be available on pay as you go until Christmas, this following huge demand from current and new customers on a contract basis.
O2 had divided its iPhone stock between new customers and current O2 customers requesting free upgrades and had sold out of its allocation of the 16GB handset within hours.
Any remaining stock coming through had already been allocated to pre-orders for existing and new O2 contract customers. Despite O2 investing heavily in their website to cope with demand their site crashed on the day of launch for periods. O2 commented "there has been phenomenal interest in the new 3G iPhone"