A report on the BBC says that O2 have won the contract to supply the iPhone to the UK. The report also says the iPhone will go on sale for £300 so thats:
£300 for the phone.
12, 18 or 24 month contract.
Probably £30 a month minimum on the contract.
Or, as is the normal way contracts work in the UK.
12/18 month contract.
£15 a month if you’re lucky, £20 to £25 if not.
With the free phone you’ll get 3G (although rumour is the 2nd gen iPhone will have 3G), replaceable battery; although I’ve never bought a new phone battery as I always replace the phone after a year. With the iPhone though, at £300 you would probably want to keep the phone longer and so would need to replace the battery.
It’ll be interesting to see what happens when the phone does go on sale.