No it isn't! Not with the new Iphone Simplicity tarrif, it costs exactly the same without the burden of a 2 year contract. Iphone Simplicity Tariff = £20 pcm Iphone 3GS = £449 20 * 24 = £480 + £449 = £929 Monthly contract Iphone Tariff = £35 pcm iPhone 3GS = £89 35 * 24 = £840 + £89 = £929 Also with the simplicity tariff it is a 1 month rolling contract AND you get 1200 texts as opposed to 500 on contract. I personally prefer not to be locked in to a contract, and have the ability to upgrade as the new phones come out. Sammy if you have the money, buy the phone outright. I am sure you would rather £20 a month than £35 a month coming out of your bank!