iPhone 4 Rival Alert : Sony Ericsson Xperia Play From £162 With Free Contract!

Cheap Sony Ericsson Xperia Play deals have been cropping up almost on a weekly basis for under £150 on PAYG. However, if you don't want to pay upfront then there's always the option of going through O2's tried and tested method.

Dialaphone offers the handset unlocked, according to a number of reports, on a contract that comes with an automatic £150 cash back, 100 minutes, 500MB data and 500 texts for £21.50 per month on a two year term.

You will need to remove the data allowance as soon as possible to cut back the price of the contract to £15.50 then, after the first year, downgrade to O2's cheapest tariff which should be £10.50 per month.

The total cost of ownership over the two years would be a mere £162 with the cashback deal meaning that customers opting for this deal would be scotch free for the first nine months or so, with the balance being paid as a zero per cent loan.

The minutes and texts are probably not the main focus of the deal; don't forget though, that if you neglect to change the contract, you will end up with a rather expensive deal.

The Sony Ericsson Xperia Play was launched earlier this year at MWC and is the first handset to come with PlayStation Certification.