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Absolutely not. You need a 2-year contract, along with a data plan. A cancelation of either of these will incur the early termination fee, which is a couple hundred dollars.
That is of course, if you plan to do it legally. You can simply go the apple store, buy an iPhone, jailbreak it, pop out your SIM and get a Pay-As-You-Go SIM for another SIM, and pop it in.
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