Deciding between iPhone - £35 p/month contract or PAYG

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Been adding up the figures and whilst PAYG works out cheaper, there's not as many benefits.
Does the PAYG tariff include the unlimited bundle, as I couldn't find anything about it on the O2 website?
The £35 a month tariff looks good but the £99 initial buy in cost puts me off :(
Would it be likely that O2 do any offers after christmas in the sales?
And is there a new iPhone model due out soon?
Sorry for the numerous questions!
 
I was looking at favourite places, but it said something like 'to uk landlines from any one postcode' - what does that mean?
 
Ah that's a nasty little catch! But with the 1000 mins to o2 numbers, can that be from anywhere?
 
Yeh but I was wanting opinion on tariff details.. O forget it I'm really not in the mood to argue!
 
Yeh those are the figures I came out with, think it worked out at about £600 for PAYG and £15 a month top up over 18 months.
 
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