USA phone contracts are a rip off compared to the rest of the world.
Could not agree more. My HTC Wildfire cost me €49 purchase on a 24 month Vodaphone Spain €6-a-month tarif (calls and SMS under €6 included, calls and SMS in excess added on) and the month after I signed the contract I received an €89 cashback for signing up (I was so surprised I queried it, it was correct). With free wifi just about everywhere it's a bargain. I don't even use Skype as dialling 902660044 gets you into a loco VOIP anyway.