Ok, so I came here to find out people thoughts about the new iPhone 3G but so far all I'm seeing is how people don't understand or don't like how the subsidy on last years iPhone 3G works, and how it's stopping you getting the new model: So here's here a quick breakdown and a possible way around it.... 1. Handset manufacturers sell the handset to the network, usually at a couple hundred £ / $ per unit. Obviously their buying in bulk so they "may" get a discount on the actual price. For proof of this check your network for the cost of a new HTC Touch HD, then compare with the price on Expansys. 2. The network then sells the handset on to you with a chunk of the cost of the phone missing based on the fact that you will be staying with them for 12 / 18 / 24 months. For example a £600 phone would be sold to you for maybe like £100 with a 24 month contract. 3. The network then provides you with a service and makes the money back on your usage. 4. Lets say each month you stay inside you allocation of minutes and texts. If this is the case the network wont make any profit from you until around month 9 of the contract. 5. This is the reason why contract lengths have increased over time. 6. The handset is the biggest cost to the network, when you include the purchase from manufacturer, the delivery to the stores, replacements, etc. Ok so with that cleared up here is a potention way of saving yourself some cash. Step 1. 19th June, queue up in the cold and dark to get yourself shiny new iPhone 3G. You'll be given a new number, but don't panic. Step 2. Ensure you have the new phone number added to the same account as your existing phone. So you get 1 bill for both phones. Step 3. Once you have this arrange to reduce the cost of the original number as low as you can. This may take a number of changes / steps and need to be done monthly. Step 4. Contact your network and swap the numbers over, so your iPhone 3G gets the old number, and the old phone gets the new number. Step 5. Bosh - you have a cheaper upgrade to the iPhone 3G Should work ok in the UK, not sure about elsewhere. Also, I would consider stashing away approx £20 per month in a piggy bank, so we don't have a repeat performance next year. Or at least save some cash when the announcement comes out in March 2010. Hope this helps.