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Would it be less expensive to buy a SIM card for Italy?

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I have an IPhone 4S and am no longer under contract so I can get it unlocked. I want to use my phone primarily to keep up with the group with whom I'm traveling. I can get an AT&T package for $30.00 for 30 minutes, etc. but incoming calls and voicemails could eat that up.
Would a SIM card be a better choice?

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