I have had an iphone and been with AT&T for 8 months, my wife recently joined in and got the $199 3g phone and as we went to a family plan it didnt really cost us anything other than the $199. I decided I could pay the 199 for a new phone for myself and give my 10 year old son my old phone instead of a new ipod touch which he wanted for his birthday. Then I found out he could activate it as a phone for $10 per month and would also then be eligible for a $199 upgrade as well. I am thinking of doing this and selling the old iphone which looks to be worth $350 or so on ebay. Any downsides that I am missing, seems like a good deal, like him and I getting new phones by selling my old one.