If you don’t mind to be an AT&T customer for two years then you can buy a refurbished iPhone 3G for just $49. These units come with a 90 days warranty. So it seems to be a good deal. Check the details at BrightHand. I paid around $400 dollars to AT&T to end a bad relationship with them. It took me a while because they own the phone lines in my county but today my home is 100% free of AT&T! There is not way I’ll go back even if they give me the iPhone for free.