I avoid Apple stuff personally (no use for what I need to do) but my girlfriend saw an Iphone4 and loved it, so I ordered an unlocked one for her birthday
£450 or so from the Apple shop.
She is on Virgin (the only network offering PAYG with auto-topup) and I have bought a £10 tool on Ebay to cut down the SIM card to the required size.
She will use it only as a basic phone but I wonder whether it can be used as a bluetooth modem as well? I know the Iphone 3 could not, definitely not if bought from say O2, and I know the reasons. I am sure an O2-branded Iphone4 cannot be tethered either without jailbreaking it. But the Apple website suggests tethering is OK for the Iphone 4.
Anyway there is stuff like
this to get around it... but it is not clear if this is needed in this case.
Are there any other gotchas?
I have heard reports of some SIM cards being blocked from working on an Iphone...
Virgin offer something like 25MB/day for 30p which will do all the basic online stuff.