iPhone issues with O2 - Looking for a new deal advice

[dreamshiner]

Been prompted to do this by O2 customer services today, they have changed my contract deal.

Background - Singed up for a new 18 month contract Jan 09 and got 12 months free broadband. Pretty happy.

Girlfriend got a iPhone in Nov 09 and again I asked for 12 months broadband. Advised I wanted it to run after my one ran out. Was told OK and notes put on system.

Called them yesterday to put wheels in motion with respect to the changeover. Was told I'd have to cancel mine and have a 6-10 day no service period while a new contract for our telephone line was established.

Asked if the credit applied to my girlfriends account could be taken over to mine to ensure no break, told no. Asked if name of my contract could be changed to hers, told no. Asked if there was an easy way round this, told no.

Got a call back and advised they couldn't offer the free broadband as I live in a Home Access area and shouldn't have got it at all. It turns out the agent who signed me up in Jan 09 applied a credit of (12*£17.50) to my account.

Part of the reason my girlfriend took a £45 a month iPhone contract in Nov was because:

a) Free broadband would save £7.50 per month (£37.50 in real terms)
b) iPhone for free on £45 contract opposed to approx £95 up front - told could downgrade to another contract after 9 months (£27.50 in real terms for last 3 months of broadband contract).

Now in a position where I'm considering both our relationships with O2 (very happy up till now with them). As a result I've been checking old threads on here regarding buying a phone up front and getting a sim card.

http://www.hotukdeals.com/item/54517...-iphone-30day-

http://www.hotukdeals.com/item/47886...s-on-contract?

I know Quidco and Topcashback aren't offering the £100 deals they were for mobile contracts so at present the best I can see for a new iphone alone is with Tesco for £440 plus points and 3% cashback.

Any advice much appreciated.