Apple has begun selling the iPhone 3GS without a contract in order to clear inventory in preparation for the release of the new iPhone model in a couple of months. Apple made this move similarly around the same time last year in preparation for the 3GS. Details of the new iPhone are still only scarce but with Apple's track record, I'm sure it will be a huge step up from the slightly dated iPhone 3GS. No-contract does not mean that the iPhone can be used with any carrier, you must still unlock and jailbreak it at your own risk.
