Lets do some maths
So if I'm currently forking out £47 a month I can change to £26 a month + 69p a day.
That means £251.85 a year for the handset (or 20.99 a month). That means a very generous saving of 1p a month.
So the "deal" has nothing to do with saving any money. It's a case of being tied to a shorter contract in return for giving up control of the hardware to the operator.
I'd be interested in knowing what "rights" I had on the phone? When can Vodafone claim the phone back, and for what reasons? If I annoy them can they cancel my contract and leave me phoneless with no warning/comback?