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I've been thinking about getting an iPhone for a while now and when I finally decided to take the plunge, after my iPod broke, I found out AT&T wants a deposit for the account. With the deposit and the cost of the phone I can't really afford the out of pocket expense.

I was wondering if I bought a used iPhone if AT&T will still require the security deposit and two year contract for the service or can I go month to month with them because I didn't get the phone subsidy?

Any thoughts would be appreciated.