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Apple UK announced the much awaited Pay-As-You-Go iPhone 3G today. This comes in collaboration with UK’s O2 mobile carrier where prices are starting at £342.50. The models available for this particular service are: 8GB at £342.50 and 16GB at £391.45. The package offers 12 months unlimited 3G data and WiFi access through a wide range of wireless hotspots around the UK.

Though the Pay & Go deal excludes visual voicemail and call merging services. Here’s what you have to follow to get hooked onto this deal:

• Purchase an iPhone 3G from the Apple Online Store.
• Connect iPhone 3G to your computer, which opens iTunes. Follow the on screen instructions to set up your iPhone 3G.
• On your iPhone 3G, change the data settings (see Activation), then top up by a minimum of £10 to activate your iPhone.