It's clearance and maybe not such a hot phone but if your more interested in the contract than the handset, like I was, I think this is a cracking deal. Yes, I know it's by redemption but I've had several e2save/OSPS cashback deals with absolutely no problems.
This is also available at Onestopphoneshop, the headline deal is 12 months @ 99p for 200 mins & 200 txts but I think this 400 mins & 500 txts deal is better.
Don't forget Quidco - £37.50 for OSPS or £36.50 for e2save.
P.S. Remember to cancel the insurance and the VIP support after the 1st month.