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@jonhings
Whatever you do, you 100% need to take out some sort of insurance on the iPhone as you simply CANNOT get a replacement handset if it goes walkies... I didn't buy insurance when I bought mine, thinking it was a sales-person-extra-commission-scam, then my iPhone got nicked and I can't get a replacement. Carephone refuse to replace it, so do O2. So I'm left on an 18 iPhone month contract on a crappy nokia.
The only option I have is to buy a cracked pay as you go iphone from europe for ..... £550!!!