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iPhone 4 Rival Alert : Sony Ericsson Xperia Arc S From £208

The fact that O2 allows you to downgrade after 12 months and even dump your data allowance in order to reduce contract prices, is a boon for those looking for an affordable handset that can be used on other networks.

The Sony Erisson Xperia Arc S white, for example, costs £21.50 on O2 with 100 minutes, 500 texts, 500MB data and unlimited Wi-Fi access.

However, buying it from Dialaphone means that you get £110 cashback automatically, dumping the data allowance from day one means that you also save £6 per month. In addition, O2 allows users to drop down a notch in their contracts after 12 months, saving another £5.

So while the suggested cost of the contract is £516, the various discounts enable you to drop it to £208 without any third party cashback offers.

The white Xperia Arc S is Sony Ericsson's top of the range handset; it is only a few months old and comes with a Qualcomm Snapdragon SoC clocked at 1.2GHz, 512MB RAM, 8GB onboard storage, a microSD card slot, a big 4.3-inch 854x480 pixel screen, Android 2.3 Gingerbread, a super thin chassis and a five megapixel camera with pseudo-3D capabilities.

Desire worked at ITProPortal right at the beginning and was instrumental in turning it into the leading publication we all know and love today. He then moved on to be the Editor of TechRadarPro - a position he still holds - and has recently been reunited with ITProPortal since Future Publishing's acquisition of Net Communities.