Reading around I sense a lot of anger and some lovely internet baiting hmmm. Anyway, I would be happy to pay for a new handset, its the paying off the remainder of my contract that I think is completely wrong. The best answer seems to be buy a pay as go 3gs, swap sims over, sell 3g and you'll probably end up spending £275 ish if you get a 32gb. Out of principle I will buy my phone from apple at not o2 (I refuse to line their pockets any further after this stunt). Plus it means my contract stays as it is i.e. no more additional months.