Yeah, but he has a grandfathered unlimited plan, so there would be no break on his bill regardless of whether he is on a contract or not.
I tried to talk AT&T into that - I have unlimited, and asked whether they would give me a price break if I didn't opt for a new phone. They declined that so I ordered a new iPhone.
I understand an individual CSR can't act alone, but I was surprised they didn't have any incentives to move me off the subsidy model. (And none of the other available plans were close to comparable - I could pay more per month without even getting a new phone).