Urgh. I was just about to buy a £15 12 month contract.
How bloody-minded is that?
It's as bloody-minded as they were with the whole extra-charge-for-tethering fiasco. I'm pretty sure it doesn't actually, technically, matter what contract you are using for which phone - but on the other hand, I am not a Lawyer and there's probably some small print that says they can cut you off if you're on the wrong contract with an iPhone...