UK phone carrier O2 is poised to drop prices on the iPhone 3G come May, claims a regional magazine. Mobile cites exclusive information, pointing to the device becoming free with £35 or £45 per month subscriptions. The 8GB iPhone is currently free with £45 and £75 plans, while the 16GB model is free only at the £75 level. Practical costs of iPhone ownership can rise as high as £159 a month.