I like to joke that "Iowa is a great place to live, but I wouldn't want to visit." Residents often complain that there's nothing to do (other than milk cows and shuck corn). One can only stand so much antiquing.

But we do have a few things going for us: clean air, relatively light traffic, lots of space, and perhaps the best cell phone plan for the iPhone.

Recently, reader PC Drew, a US Marine living in Japan, sent us a note to let us know about the challenge he had in finding an iPhone plan while visiting his wife's family. A contract plan was out of the question, of course, because of his length of stay and the fact that he's still under a two-year Softbank agreement in Japan. And due to AT&T's, shall we say, "perplexing" lack of a prepaid plan for the iPhone, the official carrier in the States wouldn't help him.

He could have stopped by a Best Buy and picked up an O2 Universal SIM Card for less than $10. That would have provided the ironically-named PC with $0.17 per minute calls but that's it -- no data, no included text messages, and no tethering ability.

After searching a bit for a prepaid solution, he stumbled across the MEGAtalk Nationwide plan from regional GSM carrier, i wireless. This no-contract, no-credit-check offering gives the customer 30 days of unlimited calling, with roaming and long distance, for $49 plus taxes.

But wait, there's more! Not only did PC get unlimited voice minutes, but he also had unlimited SMS texting and, here's the kicker, unlimited data usage. And, with the proper hack, i wireless customers can tether their iPhones for free. Yes, you read that right... free tethering on an unlimited data plan!

Of course, getting a service plan from an unofficial carrier (read: non-AT&T, at least in the United States) requires your iPhone to be SIM-unlocked. This has become much easier over the past two years and most cell phone shops can perform the procedure if you're too nervous. PC had already performed the necessary steps, as he often finds himself in areas that aren't exactly covered by his Softbank contract.

Okay, now for the downer. Because it's a T-Mobile affiliate, i wireless doesn't offer iPhone-compatible 3G service. In fact, they only offer EDGE speeds in their Iowa-based footprint, unless you're traveling to an area with T-Mobile 3G. As a result, that unlimited data is a bit crippled speed-wise, but it's still a heck of a deal.

So, if you're planning on traveling to Iowa -- say, to Fort Madison for the 62nd Annual Tri-State Rodeo in September -- or if you're "lucky" enough to be stuck living here, you might want to take advantage of what's probably the most economical cell phone service plan available for the iPhone anywhere in the USA.

UPDATE: Quite a few readers asked if this plan is available outside of Iowa, so I contacted i wireless directly to find out more about its policy. Yes, you can sign up for this plan, even if you don't live in the i wireless footprint area, however, the representative I spoke with pointed out that this plan may expire at any time, which would seriously affect the customer's ability to use his or her phone effectively. If you are interested in further details, please contact i wireless directly.

DISCLAIMER: I own a computer and cell phone store that sells this particular prepaid plan. But the above story is absolutely true; PC Drew did contact TUAW to brag about his bargain find, without knowing me or my connection to the product.

Why wouldn't they? I know about a dozen people who have switched to AT&T precisely because they are the only US iPhone game in town (mostly). The exclusivity ends 2010, but SAI asks, will Apple renew its contract with AT&T? The biggest problem plaguing iPhones appears to be the network -- AT&T is notorious for dropped calls and spotty 3G coverage, whereas now-number 1 service provider Verizon has a great reuptation for coverage (both voice and data).

The issue for Apple is compounded by the fact that AT&T uses the globally-accepted network standard of GSM, where Verizon uses the other, less-used standard CDMA. So now you've got two radios to deal with (as provided in the Blackberry 8830 World Edition), something I think Cupertino isn't eager to implement.

Last week came the sneak peek at internal AT&T memos meant to coach employees on the sale of unsubsidized iPhones. Today, there's news that Apple has begun selling no-contract iPhones at their retail stores. You can grab an 8GB iPhone 3G for $599 or a 16GB model for $699, take it home and do what you will. Unlike restrictions set up by AT&T, Apple Store customers may purchase as many unsubsidized phones as they please.

With WWDC and the release of iPhone OS 3.0 both scheduled for June, it looks like Apple might be clearing house for something new. Perhaps the current model will drop in price and become the entry-level iPhone to make room for the rumored 2009 model.

In any case, go and pick up a contract-free iPhone directly from Apple, if that's your thing.

If the iPhone's prices of $500 and $600 with contract were a little too much for your wallet to stomach, you might take solace in some new info allegedly leaked from a Cingular AT&T consumer survey (Wait: do wallets really have stomachs?). Engadget has the details on the possibility of the iPhone actually costing a full $200 less, putting the price points at $300 and $400 (for the 4GB and 8GB models, respectively) with a contract, meaning that the $500 and $600 prices could ultimately be for out-of-contract purchases.

Now take this all with a grain of salt; this info and the accompanying image would be easy to fake, and the designer in me says it could be exactly that. Nevertheless, a romp through iPhone dreamland couldn't hurt, and more realistic prices of $300 and $400 would put a lot of smiles on the faces of iPhone hopefuls. Heck, at the least, it would mean Steve Ballmer has a little less to say about Apple's first mobile phone.