iphone confusion ??? contract uk

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hi 1 explain if bought iphone of apple website have activate iphone on itunes if failed credit check id have phone cant use ???? in o2 store take credit check offer pay go instead if fail check ???? 1 more thing if iphone isnt subsidised why stuck in 18 month contract ????
 


there no credit checks in stores. no 1 knows sure payg.
 


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