Well pay as you go will cost you £130 for the phone and £120 in calls = £250 in a year.
Contact will be £90 for 9 months and then £90 for last 9 months = £180 a year
Go with contract phone.
Where have you found thephone?
Cheapest I have found is dial-a-phone - you have to send off for rememptions, but can be worth it.
I went with carphone warehouse. I've got the new Nokia 6230i for £30 month BUT I got cheque backs so far for £180 and have 6 months 1/2 price. Wehn I wored out the whoe deal it will cost me £10 a month for 18 month contract!!
I made dh tae it out too