First - Some background, This is tentative, but reports coming from AT&T (See their forums) are that existing customers who don't have iPhones and aren't eligible for device upgrades, will not be able to purchase the new iPhone for the advertised price. Rather, we will have to pay some unsubsidized higher price along with the higher data plan rate. That stinks. My razr broke down in april and I renewed with a cheapy, waiting for the new iPhone. Now it looks like I'll have to pay even more cash for one. While it might be more cost effective to break your contract (depending on the non-subsidized price), a better way is to find someone who is upgrading their iPhone and ask them nicely to borrow it for a little while. Step 1) Wait for your friend to upgrade Step 2) Activate using their old phone Step 3) Buy a new iPhone - as you are an existing iPhone user, you qualify to "reset" your contract and pay the same price as everyone else. Step 4) Give your friend their old iPhone back (it still makes a great iPod or backup). Step 5) Buy your friend lunch. Step 6) Contact your congressperson to complain about the fairness of these cell phone contracts.