What does this contract mean for the iphone 4s?

I'm trying to get the iphone 4s for 200$$ with a 2 year contract. This is the link http://www.att.com/...white.html. Does this mean that I have to make sure I pay my bill for 2 years? I'm kinda confused. I have never had a phone with a contract before.

A 2 year contract means you are locked with them for 2 years. You agree to a 2 year commitment to pay your bill and services with A T&T. If you decide to break your contract or cancel services with A T&T before your 2 year is up you would have to pay a termination fee. With a 2 year contract then you get the iphone for $200.00

So you have to look at the plans. With a voice plan and a data plan you would be paying close to 80 dollars to 90 dollars each month for 2 years? Are you able to do this each month for 2 years? If not then this is not the right deal for you.

Otherwise you can get a prepaid plan with no contracts and you can cancel anytime without any fees. Here are the prepaid services.

www.boostmobile.com
www.metropcs.com
www.virginmobile.com