8:00 AM -- In response to our story on the new pay-as-you-go price plans for the 3G iPhone, an eagle-eyed reader spotted that Vodafone Italy has released its pricing for the 3G iPhones on pre-pay deals. The 8GB model will cost €499 ($769) and the 16GB will cost €569 ($877). (See iPhone Goes Pay as You Go.)

That’s in line with CCS Insight analyst Ben Wood’s view that unsubsidized 3G iPhones are likely to cost more than the iPod Touch, which retails for £269 ($526) in the U.K.

— Michelle Donegan, European Editor, Unstrung