16GB iPhone on pay-monthly tariff of £35/month + £159 for the handset = £789 paid for the life of the contract (18 months).
16GB iPhone on PAYG would be £400 plus a monthly top-up of £10 costs £580 over 18 months.
OK, the argument falls down if you top-up more than £20 monthly, but the fact is that it also opens up the possibility of those with poor credit ratings to purchase the phone.
The PAYG option also works out excellent value if you're someone who doesn't send texts very often.
16GB iPhone on PAYG would be £400 plus a monthly top-up of £10 costs £580 over 18 months.
OK, the argument falls down if you top-up more than £20 monthly, but the fact is that it also opens up the possibility of those with poor credit ratings to purchase the phone.
The PAYG option also works out excellent value if you're someone who doesn't send texts very often.