NB I saw while reading about the new iPad that the advice had changed that some data plans did not work between the two but it might. It's somewhere on the iPad2 pages.

I'm guessing that for O2 at least this is something to do with the settings. I have an iPhone on a non-iPhone plan (no visual voicemail) and every time there's an OS upgrade I have to go and change the settings. It may be that it's this simple -- the data plan has different log-in. So people who want to swap them out might consider getting a PAYG iPhone and a 'normal' SIM-only plan.

but no guarantees and I have 3Gs so can't test it on someone's iPad...

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