Noob question about iphone upgrade

[bosoxnm3]

I know this is a real amateur question about upgrading that y'all, but do you mind helping me out?

I got my 3GS in August of 2009. I just called *108 and it said in a text, "Due to past due balance, and other reasons, an upgrade is not available. Payment will make full retail pricing available for all handsets except iphone. After payment, we can offer you an early iPhone upgrade with a new 2-yr commitment and an $18 upgrade fee at a participating iPhone sales location. Additional discounts for all other handsets may be available on 4/3/11."

So does this mean that once I pay off whatever's due on my account, I can upgrade to iPhone 4g for $18 and a new 2-yr commitment? Is the new 2-yr commitment the same price that I am already paying? Is there any startup fee for a new 2 year deal? Will I pay the $200 dollars or whatever it retails for or will I have to pay $600?

Thanks for the help.

 

[Tara Luvs Apple]

No, you will have to pay the usual $200 more than the cheapest price. An early upgrade price is not the same as a full discounted upgrade price.

I not sure if it adds a new contract or not though. I think it does because my mom lost her iPhone that she purchased last year and had to replace it. She paid the middl price and her full discount upgrade date was when she purchased the replaced phone.