Is the iPhone worth £350? Not to me (I have one) it isn't...

However, it does depend on how much you use your phone and for what. Two differenct CPW staff have told me that taking a PAYG iPhone deal will give you 12mths free wifi and 3G access (ie, ANY data used will be free for a whole year, and the wifi deal is 12ths free subscription to the Cloud network, which operate all over the place). After 12mths, to continue getting 3G data access and wifi subscriptions, you need to top up £10 a month (of which the whole £10 can be used with calls and texts, and it's purely the "top up" activation per month that carries your data and wifi subscriptions on every month)

So, if you don't make many calls and texts, but what to use as much data, either 3G cell net or wifi, then yes, you'd be better off with it....

First year is gonna cost you £350 + whatever you use in calls and texts. After that it's a tenner a month minimum, plus whatever else you use in calls and texts. So if you only use on average £15 a month in calls and texts, then you better off with the PAYG version as you pay your £15 a month for calls and texts, and get all your 3G data useage free.

You can break it down like this;

£99 + £35 per month for 18 mths is gonna cost £730 for the contract term - equivelent to £487 per year (12mths)

Go PAYG, working on a basis of £15 a month credit, for 12mths, will see you spend £350 (handset) + 12x £15 = £530 for the year : £43 more

But the next year only costs you 12x £15 credit, so £180, as opposed to the £420 contract cost

So round all that up to 18mths to compare directly with an 18mth contract and you get this;

CONTRACT : £100 (handset) + 18x £35 = £730 (18mths)
PAYG : £350 (handset) + 18x £15 = £620 (18mths) £110 CHEAPER

So you could be better off in the first year alone - not to mention another 18mths on contract will cost £630, or 18mths on PAYG @ £15 a month will cost £270, a huge £360 a year less