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Free 12 month contract??

I have just checked out the mobile comparison site that was mentioned in Martin's latest newsletter and I was amazed to see that I can have a free 12 months contract which means I will only have to pay about £4 a month based on my usage. I'm wondering what the catch is? Is it because I have to claim cashback? And what will happen at the end of the 12 month free time. Will I have to cancel because the rates go back to normal or get the phone unlocked? Sorry if these seem silly questions but i have always plodded on with my same old phone and network and have never considered changing before. Is there a risk that some of these companies might go bust before I get my cashback?
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