Yes, you read it right! You have to wait for the PAYG iPhone 3G ('coz then you wont have to worry about contracts) to come out, but when it does you can buy it, unlock it, get a O2 simplicity SIM (the second one on this list is good) and use it in your iPhone! You need to pay a bit extra for a web browsing add-on, but its only £7.50 and its much better value then the price plans that come with the iPhone normally! 