[hansen384cbh]

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!

Your maths is solid, but bear in mind that if you go with the O2 option you'll be paying more initially, as opposed to spreading the cost out. Not an automatic reason to decide against it, but it could be a consideration for some.

[tutkarussia]

Can't help you with plan options but can give some input on the phone itself. I have had one for 1 year ( 3G) and though I love it the battery is horrible from new. Standby is fine but if you use it for texting , email , music etc the battery can go in a few hours.