If you bear in mind that the 3.0 software update can be used to upgrade previous iPhone models, then the key improvements in the iPhone 3GS boil down to its improved performance, the new camera and support for 7.2Mb/s HSDPA. Those features alone would certainly make us happy to upgrade to the new model. The only problem is trying to decide what you’re prepared to pay so much more for those new features.

O2's tethering charges sour this Apple
You can get a 16GB iPhone 3GS completely free if you sign up for the top-of-the-range contract, which costs £73.41 per month for 18 months. You can get the 32GB model by paying an additional one-off fee of £97, or by extending the contract to 24 months. The range of tariffs on offer is confusing, although we covered them in detail here.
However you look at it, the sweet spot seems to be the £34.26 per month tariff, which allows you to buy the 16GB phone for £185, or the 32GB model for £274.

Landscape typing now available with the iPhone 3.0 update
It’s also possible to buy the iPhone without a contract on O2’s ‘pay as you go’ plan, although this will cost you £440 for the 16GB model or a thumping £538.30 for the 32GB 3G S.
COMMENTS
Multitasking
@ AC 16:44 GMT
The iPhone and iPod touch DO multitask.
Phone, Mail, Safari, iPod continue running in the background, in some fashion, memory permitting. And how else could you continue listening to music while using another app?
What the iPhone doesn’t allow is background processing for third-party apps.
Expensive Apples
lol, sounds like everyone is getting screwed over on the amount of money they have to pay to have this phone. Let alone that its made by a company who feels they must restrict any freedom of using your phone the way you want to! I think i'll laugh at the next person I see with an iphone 3g s because now I know how much they pay per month!
@LS
I thought I had and saw no mention of it anywhere on Apple's site nor in any of the pages and pages of reviews. I now see a few mentions on a website or too so I take it back. I think I'll still wait now though and see what the next revision is like. Contract not up until November and then I'll just wait either a month until the rumoured surprise device shows up or seven months until the next WWMC. Roll on a 800x480 OLED iPhone with 64GB;). Erm, I'll take one;).
Caravans
"The boss rolled his car and caravan last month and his iPhone took a tumble out the window along the motorway"
Reminds me of that infamous Bosnian Serb leader, Karavan Stukinadic

