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iPhone 3GS Rival Alert : Orange San Francisco II Free On 10 Month Contract

Orange has introduced a new hybrid deal that combines Pay As You Go and monthly contract characteristics; the deal offers the new Orange San Francisco II for £99.99 and £100 free credit when you top up £10 for 10 consecutive months.

In other words, you "pay" £200 over 10 months and you get the Orange San Francisco II for free. The phone is not currently available on a Pay Monthly contract and the credits can be used for free internet, free calls and texts or even free music.

Orange also provides 2-for-1 cinema tickets as part of its Orange Wednesdays, magic numbers which allows unlimited calls to three Orange numbers, and a free movie on iTunes via Orange film to go.

The phone itself is an improvement on the original Orange San Francisco manufactured by ZTE. It has a five megapixel camera with flash, a 800MHz ARM11 system on chip, 512MB RAM, a 3.5-inch WVGA capacitive touchscreen, Android 2.3 Gingerbread OS, Orange's own Signal Boost and a 2GB microSD card.

T-Mobile also has a similar phone, based on the same hardware but with a different shell, called the Vivacity which can be had on a two year contract with 100 minutes, unlimited data and 100 texts for £10.21 per month.