This is largely just a trick of marketing, if you look at the cost of the phone over it's lifetime it turns out much cheaper to buy up front, My n1 cost me 600 AUD, I then bought a 129 AUD 12gb 12 month SIM card and a VOIP account for 3$ a month for an incoming local call number in the current capital city I'm located in, which will be changed next time I relocate at the end of the year.
Total cost over 12 month period will almost definitely be less than 1k unless I go completely overboard on voip calls, to boot the voip calls are far cheaper than normal mobile operator calls, and work fine over 3g with the sipdroid client.
Total cost over 12 month period will almost definitely be less than 1k unless I go completely overboard on voip calls, to boot the voip calls are far cheaper than normal mobile operator calls, and work fine over 3g with the sipdroid client.