First off, I totally understand the whole issue of phone subsidies and the purpose of ETFs, so I am not upset that I will have to pay more than the advertised $299 for the 32gb 3GS as a current 3G owner. But here is my plan: Right now, I can go to Apple.com and preorder an iPhone 3GS 32gb as a new account for $299. It lets me do this even though I enter in my contact information exactly as my current ATT account. So I am buying the iPhone as a "new customer". I passed the credit check and put the iPhone into my cart...all I have to do is click "Buy". Then on June 19 after receiving my iPhone 3GS, I plan to call up ATT and cancel my current iPhone 3G contract. The prorated ETF on this contract is currently $120, which is the extra amount that I will fork over for upgrading early. This is better than the $200 extra I would have to pay via the early upgrade option offered by ATT on my current contract. There is a $36 activation fee either way. Does this sound like it will work? The only downside that I can think of is that I don't get to keep my current phone number, but I don't mind because it throws the telemarketers off my trail for a while. Can anyone see any holes in this logic? Also, are there any gotchas I should watch for in terms of cancelling my current account? Do I have to do so before the next billing cycle or is usage prorated for partial month?