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End of contract - Iphone 5 O2 v 3?

Hey guys

Just need some advice as my O2 contract iphone 4 is coming to an end and after 2 yrs desperately need a new phone (Iphone 5 32gb)

I rang O2 and they offered me:

-12 months
-phone £60 (but after 12 months you give it back and get upgrade)
-2000 min/texts
-2gb

=£35pm


With 3:

-24 months
-phone £199
-UNLIMITED DATA
-2000min/txts

=£36


...I dont use many minutes/text but a lot of data from youtube/apps and at the moment my 500mb lasts 1 week, so the 3 unlimited data is very appealing. Plus it offers tethering and i am thinking of getting ipad.

I could probably manage with 2gb but is the shorter contract and much better CS (from what iv heard) worth it? Is 3 really that bad when it comes to problems with contract? Do you get coverage?

Any ideas would be helpful..i would love to stay with O2 but feel restricted at the moment with the data.
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