Need an iphone for dev work - just starting out

Hello
I'm just starting out with iphone development. I already have another mobile service that I use for personal use so don't have the need for iphone personally. I just want to buy it for development work and will be using my WiFi network as the internet bone.
I dont want to get into a contract with at&t for 2 yrs. Does that mean I will need to buy an iphone for the regular price? Or can I get one cheaper than usual just for dev work?
All responses appreciated.

thanks again Tamara.
I googled a bit and found this post-
http://alexking.org/blog/2007/07/02/iphone-without-service
I wonder if this is indeed true.
In any case, I'm strongly leaning towards the ipod touch. Does not having a GPS mean, location based apps won't work? So if I want to download an app that relies on my current location for e.g. to tell me whether my friends are closeby, such an app won't work? Hmm...in that case GPS seems to be necessary.

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