I have traveled internationally with my iPhone a few times and have found that AT&T's International Plans certainly work out to be more cost effective than purchasing a pre-paid SIM from overseas. The pre-paid SIM may seem cheaper but you must also consider the cost for the caller you are talking with in the States, as they may incur huge international fees. As far as the Data package is concerned, I didn't subscribe to one and just looked for WiFi locations and found them to be quite numerous throughout my travels. The Voice plan is $5.99 a month and greatly reduces the per-minute charges of calls. Data packages generally include a set amount of data (but is it VERY expensive if you go over) to use for the month.
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-Philip
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