Is it possible? Or do I have to be on £35+ a month with o2?

no o2 have the rights to the iphone and are only doing it on contract which is just a marketing scam, apart from that the iphone is an outdated piece of technology

So much wrong information here. Take advise from someone who has an iphone without the contract.

You have to buy the iphone from an o2 shop but you activate it yourself at home. Instead of activating it you can download a program called Ziphone which lets you unlock and jailbreak your iphone.

Unlocking it lets you put in any sim card that you want.

And Jailbreaking it lets you download other applications for the iphone such as camera applications, games, just basically add ons.

The software is free and it only takes about 5 minutes to do

http://www.ziphone.org/

No you can't.

Even if you could or you bought one used, you would not be able to use features such as Visual Voicemail and you would probably run up huge bills from all the data use you would get through.

try this site

http://www.lightinthebox.com/index.php?currency=GBP&main_page=products_category &cPath=1085&cName=Apple-iPhone&sort=6d

i have used it before it is a good job

No you cant, but if you nipped to France on the ferry,you could get one there.

you cant at the moment,can only get it on contract from O2.