A grand per year on a 2 year contract?
Where are you getting that from?

I just went to ATT and selected a Certified Like New iPhone 4 8GB and a 450 minute plan with rollover minute s and a 300 MB Data plan since a data plan is required and end up at $60 per month which is 720 annually.

My Mom just got this plan and recertified phone and the phone looks to be just like new.