I hate to fuel the fire on all this speculation, but today I called AT&T and presented them with my scenario to try and figure out the best route. My brother has Verizon and his contract ends June 22nd. The rep said he can go and buy any inexpensive phone after his contract ends and activate it with AT&T while porting his number over and pay the promotional price for the phone. When I asked her if this would disqualify him from the $199/$299 price points (since he wouldn't be considered "upgrade eligible" only a few weeks into his new AT&T contract) for the 3G iPhone she said he wouldn't be disqualified because all 3G iPhones purchases will be treated as "new activations" and will just restart the two year contract. I've read a lot on the forums saying if you are in the middle of an AT&T contract (where your phone is not an iPhone) you are not eligible for the $199/$299 prices but the representative I spoke to (who sounded like she knew what she was talking about, FWIW) said that is simply not the case. Is this information inconsistent with any official information from AT&T that is posted online somewhere?