prepaid phones in Europe

I have heard that you can buy unlocked GSM phones on Ebay for reasonable cost. This is probably the best way because you are not tied to one provider but can choose a prepay SIM card that suits you best from a whole range of providers. For example have a look at this provider who specialises in international calling, although their in-country call rates are usually competitive as well. http://www.lebara.com/

You can buy a prepaid phone in Europe that is not locked to any one carrier. It may come with a SIM card for a particular carrier, but you can always get a SIM card for a different carrier if you want to switch. The advantage of buying a phone over there is that you can get a new phone for not much money. It will likely be a pretty basic phone. Although I've bought lots and lots of phones off ebay, doing so is not without risk, especially if you aren't real familiar with the process.