How does a mid-contract upgrade affect current contract?

[wlow3]

I'm on AT&T a few months past the one year of my current contract with an iPhone 4. If I upgrade to the 4s, I understand that AT&T will charge me an additional $250 above the cost of the discounted price.

My question is, what happens to my current contract? I guess this may be a dumb question but is that fee in essence to buy out my current contract and then I start fresh with the 4s with two years starting at the day of purchase?

 

[rockyroad55]

I'm on AT&T a few months past the one year of my current contract with an iPhone 4. If I upgrade to the 4s, I understand that AT&T will charge me an additional $250 above the cost of the discounted price.

My question is, what happens to my current contract? I guess this may be a dumb question but is that fee in essence to buy out my current contract and then I start fresh with the 4s with two years starting at the day of purchase?

Yes, your contract will reset to two years from when you purchase it.

 

[james92se]

I'm on AT&T a few months past the one year of my current contract with an iPhone 4. If I upgrade to the 4s, I understand that AT&T will charge me an additional $250 above the cost of the discounted price.

My question is, what happens to my current contract? I guess this may be a dumb question but is that fee in essence to buy out my current contract and then I start fresh with the 4s with two years starting at the day of purchase?

AT&T extends your contract another two years. That's what sucks - you end up paying nearly full retail price yet the phone is carrier locked AND it extends your contract.

 

[bpeeps]

I'm on AT&T a few months past the one year of my current contract with an iPhone 4. If I upgrade to the 4s, I understand that AT&T will charge me an additional $250 above the cost of the discounted price.

My question is, what happens to my current contract? I guess this may be a dumb question but is that fee in essence to buy out my current contract and then I start fresh with the 4s with two years starting at the day of purchase?

Just buy it on Ebay for full price and swap the Sims, no contract mumbo jumbo necessary.

 

[james92se]

Just buy it on Ebay for full price and swap the Sims, no contract mumbo jumbo necessary.

If by "buy it on eBay for full price" you mean "buy it on eBay for a grand or so from wanna be iPhone flippers" then you're right..