I see Choice are selling a Samsung E1120 for £49.99 including £60 airtime (£10 per month for six months).
2.5 inch 65,000 colour display Candy bar style phone Holds up to 200 numbers talk time of up to 9 hours and 45 minutes standby mode 540hrs or 22.5 days!! No contract, simply Pay as you Go Includes £60 airtime credit
Certainly looks like it. Orange must be pretty desperate to gain a larger slice of the market. Perhaps phones are going the same way as Epson printers in terms of hardware/consumable price ratio; virtually give away the printer and make your profit from the ink.
OK but why not just use it to make calls with, using up the £10 a month, and then, at the end of the 6 months sell the phone for a few pound and use the money to buy some stock or a Chinese take a way courtesy of Orange ?