Also can I use it like an itouch?
If you want to use all the features via the phone network, then yes, you need a data plan. I don't know whether it can also connect via 802.11. Check the specs.
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all i want to do is make calls through the network ,not internet thanks for the help!
u dont hav to hav any plan to us ethe iphone to its full potential. if you have a 3g on o2 if you get any o2 sim card u can use the iphone to its full potential. ill let u into a lil secret. pay n go iphone , top up by £15 u get 1000 mins,£30 you get unlimited mins but on a normal o2 simcard top up £15 u get unlimited mins and texts for a month thn the month after u use yur £15 and when you activate u shud get a signup bonus and a extra for the vat (ends 01/01/2010)
oh and if its unlocked you can use any sim and still get the iphone to work to its full potential. i had tmobile b4 i used a o2 sim