I had a good chat with the guys in O2 store in Birmingham today to clear a few questions I had in my head. I asked: "I'm an O2 customer on PAYG, and I would like to buy an iPhone. I cannot afford the contracts being a student, so can I keep my PAYG tariff?" Answer: "Yes you can stay on PAYG, however you will not get unlimited web via phone or wi-fi..." A little later on I found PAYG will be available, for example, to those that have poor credit ratings, or those that just don't want the contract. Also, O2 will unlock your iPhone as all phones in the UK have to unlocked, so you could switch networks if you wanted. You can buy the handset, they checked and it is NOT subsidised by the contract so no extra fees, they said if I buy they will set up the phone (just remove the SIM that comes with it and put my old one in and register it to the iPhone, you can either activate yourself via iTunes or in O2 stores). I have free Cloud/Openzone with BT Internet, which in Birmingham and areas around has these wi-fi network. Oh, and Apple Store were clueless. Some staff by 2PM didn't even know about the iPhone coming to the UK, let alone manage to answer my question.