Emerica is right in what he's saying. both plans have there highs and there lows, it depends on what your daughters going to use the phone for... is she text crazy, is she always on the phone i.e calls.
The internet is free, which is always a good thing. You could alos have a look at the bolt-on packages o2 provide. I personally travel a lot abroad usually and for the fact that you live thousand of miles away and obviously international calls cost a bomb, there is some outstanding bolt-ons that will greatly reduce the cost of international calls.
Also.. if she were to Jailbreak the device (if you bought it on pay-as-you-go depending on the firmware) she could always insert a T-mobile contract only sim card (you dont get a phone just a contract) then you can set the contract up in such a way that when she reaches her limit which could be £30 a month then she can't get any larger bills.... its stops as soon as you hit the £30 limit. Its designed more for children who want a phone but it works effectively for just about anyone wanting to watch what they spend. If she was to hit her limit, she can still receive calls and texts- and another great feature is that even though its a contract you can go into a shop and buy a £10 top-up card so T-mobile is quite a good option, but as i said it depends on which firmware the PAYGO iphone comes with, as she'll be able to yellowsn0w it.
Hope this helps and sorry for the big read
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32gb iPhone 3GS 3.1.2 JB via Blackra1n
8gb iPhone 3G 3.1.2 JB
-John
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