New deal from EE from today that is very tempting. Looking at an iPhone 6S Plus the monthly line rental on a 64G looks shocking (84.99) BUT you get:

To upgrade for free at 12 months
50G data a month
1000 international minutes a month
200 MMS (yes they still exist) a month
200 084/7 minutes a month

So that means:
12 times 84.99
Upfront cost of 49.99
Quidco deduction 93
Deduct the cost of the handset as it's effectively a 12 month payment plan (699)

You get 50G data, all the above for 23 a month.

Very tempting. What is also interesting is that if you choose a more expensive model (128G) the upfront cost only goes up 50 when the cost from Apple is another 90.

I think it just got better, EE are doing the same bundle with an 8 pound (pound symbol broken on keyboard - sorry) a month 12 month Sim which gives unlimited minutes and texts and the 50G is shared (my wife uses less than 10G a month so that's 40G left for me). So instead of 23 a month I'm up to 31 a month but my Mrs can ditch her 19 a month Three deal so all in this is looking like a good deal all round.

Sorry, but this is a horrendous deal.

There are flaws in your calculations. The 64GB iPhone is only worth £619 meaning that your calculated monthly cost for the service is £29.82.

Except it's also a 24 month contract.

So 24 x £84.99
Upfront cost of £49.99
Quidco deduction £93 (assuming it pays out)

Total cost of 2 year ownership is £1996.75

Minus cost of handset £619
£57.41 for the service

Sure you can upgrade after 1 year, but by doing this you will then restart another 2 year term. Do this every year and they've got you by the balls.

Unless you need tons of minutes, you are far better to do what I did. Buy the phone SIM free and unlocked for £619. Take out the SIM only deal with Three, unlimited data and SMS and 200 mins for £17 a month.

Total cost of ownership for me over 1 year is £823. Or if I keep the handset for 2 years then the total cost is £1027, compared to your £1996.75

Its not such a bad deal if you phone overseas mobiles or landlines a lot, 1000mins a month soon adds up plus 200 mins to 084/087 numbers and 200 picture msgs.

There are lots of sensible options (e.g. localphone) that make the abroad/084/087 minutes virtually worthless with little effort.

Still, if you use a lot of data it's pretty reasonable.