O2 are now doing their simplicity 30 day contracts with a phone for a cost.
This is only in store and not on-line.
This gives the opportunity to:
(i) get the phone at a reduced price
(ii) buy phones which are currently not purchasable on PAYG.
Prices change weekly, I just bought the excellent Nokia E71 for £226 with a £15 a month 30 day contract.
They also quoted me a HTC Touch Pro at £322 and a Palm Treo 500 at £127.
These prices are significantly below the general simfree price.
Most of their contract phones are unlocked .
Anyway a good choice for someone that is thinking of buying a more sophisticated phone simfree and/or does not want to be locked into a 12/18/24 month contract.
Details on tariffs:http://shop.o2.co.uk/sim-only-simplicity