Deal or no deal: Best Buy's iPhone 3G S giveaway

Earlier today, BGR reported that Best Buy would be giving away free iPhone 3G S phones for one day only, on Friday, December 10; the news then appeared as a Best Buy tweet as well. We contacted the store, and a Best Buy rep confirmed to us that the iPhone 3G S giveaway is indeed happening tomorrow but did not confirm any further details.

We do know that the giveaway is part of Best Buy's Free Free Smart Phone Sales Event, in which the store is offering free phones throughout December after instant savings with a new or upgraded 2-year agreement with the participating carrier and activation through Best Buy.

So what's the catch? The iPhone 3G S has done very well in our tests, but it came out in mid-2009. You'll be required to sign up for a 2-year contract with AT&T, which means your phone will be 3-and-a-half years old when your contract is up—and AT&T is the lowest-scoring cell-phone carrier in the U.S. according to our most recent consumer survey.

Bottom line: A free iPhone sounds like a great deal. But it may not be such a bargain, since you have to lock into a contract with an older phone or face hefty early-termination fees. 

Best Buy Mobile offering iPhone 3GS for free on December 10th [BGR]

—Nicole Sarrubbo