No doubt many iPhone toting O2 customers have been waiting a long time for free broadband but apparently that is what O2 is now offering their iPhone customers, a tethering broadband connection for free where the iPhone acts as a 3G modem reports an article over on iphone-scoop.

O2 iPhone users can grab the free broadband connection, but after December the 31st 2009 O2 charges of £9.79 per month for a 3GB data speed connection will apply, so grab it free while you can, and apart from the free connection customers who sign with O2 before December 31st can have a broadband connection package of 8 Mbits per second.

O2’s standard package costs $7.43 a month with premium package costing £9.79 a month and Pro package costing £17.34 a month, and one thing you should be made aware of is the deal is solely business based.

Basically it is O2’s intention to try and hold onto their existing iPhone customers rather than having the slip away to Orange or maybe later to Vodafone.