After Carphone Warehouse with the Samsung Galaxy S2, O2 is also giving away free line rental with a mainstream handset, in this case the HTC Desire S.
The smartphone is currently on sale on PAYG for £330 online but you can get it for a jaw-dropping, mind numbling £324 by opting for a two year contract with a monthly cost of £13.50 (and no upfront cost).
You only get 50 minutes, 250 texts and 100MB data allowance but given that O2 is likely to unlock the phone for free, you essentially get a free, two year line rental with the phone.
The HTC Desire S keeps most of the features of its illustrious predecessor, the HTC Desire; it has a 3.7-inch WVGA capacitive touchscreen, a 1GHz Qualcomm MSM8255 Snapdragon system on chip with an Adreno 205 GPU, DLNA compatibility, GPS, Wi-Fi, a 1450mAh battery and a five-megapixel rear camera.
Apart from the improved SoC, the Desire S benefits from Android 2.3 Gingerbread, a front facing camera as well as a new, improved chassis design (an aluminium unibody design like the HTC Legend).
In comparison, Carphone Warehouse is selling the Galaxy S for £20 per month on a 12 month contract with an upfront cost of £100 which puts the total cost of ownership at £340 although it comes with 200 minutes, 1000 texts and unlimited data allowance.