I live in Austria. For some unknown reason we have really good rates on mobile phones. The phone is paid up front at ~€80.- and then he has got a cheap plan with €-cent 4.9/min. In Austria you just pay when you call someone. I have a two year contract with my iPhone with 2,100 free minutes 1,000 free texts and 3GB free data incl. tethering for € 30.- a month (pre tax).