You can currently grab the Sony Xperia U (1GHz processor, 3.5in display, 5MP rear camera) for £7.50PM on a 24-month Talkmobile contract from e2save. That’s £180 total.
The monthly allowance includes 250 minutes, 5,000 texts, and 500MB of data. Talkmobile uses the Vodafone network.
(Thanks to goonertillidie at HUKD)