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iPhone 4S Rival Alert : Samsung Galaxy S II For £328

Exploiting two well known O2-only "loopholes", you should be able to cut down the cost of a contract with the Samsung Galaxy S2 handset to as little as £328.

The contract, called the O2 100 Data, via Dialaphone, is for two years with 100 minutes, 500 texts, 500MB mobile internet data allowance and unlimited Wi-Fi.

There's an upfront fee of £10 and the line rental costs £21.50 per month. So the total cost of ownership is £526.

But if you rescind the data allowance bolt-on (which also removes the Wi-Fi) after the first month, you save £6 per month or £138 for the rest of the contract. Then after the 12th month, downgrade to the next cheapest package, saving you another £5 per month or £60 for the last 12 months.

In total, that's a £290 saving for the contract term which brings the cost of the package to a low £328.

The Samsung Galaxy S2 is still a fantastically capable handset. It has a 4.3-inch Super AMOLED screen with a WVGA resolution, a dual core chipset clocked at 1.2GHz, 1GB RAM, 16GB onboard storage, Android 2.3 Gingerbread, Samsung Game and Music hub, TouchWiz user interface, an eight megapixel camera and more.