iphone upgrade O2

[Pickers]

So its time for my upgrade and I am looking for a good deal here, using quidco to try and minimise expense.

I have a 16gig 3GS at the moment and am paying £15.50 a month, but I fear the phone may not cope with another years use.

O2 contracts only become reasonable if tied into a 24 month contract, and for £299 I can get the 16 gig 4Gs but at £18.50 a month.
Thats £444 + £299 = £743 for 2 years phone use.

As a comparison, an unlocked 4gs from Apple is £499 and I can go pay as you go and top up £10 a month.
after 2 years, thats £499 + £240 = £740 (-£10 cashback from quidco) but this gives more data allowance - although I am unlikely to worry much about this, and I am not tied to a contract.

In both cases, I can get £75 from o2 recycle on my old 3gs.


I really dont know what to do!

Any ideas?