Iphone upgrade to 3g?

I went into an apple store today and the apple store worker said that I dont need to sign a unknown 2 year contract with the 3g iphone. I am a current iphone customer and want to upgrade to a 3g iphone. the man said i need to come within and pay the 200 bucks for the new one and pay cheque the extra 60 for the text and 3g service. I would pass my regular iphone to a kith and kin member and i would get the trial one. He also said i wouldnt hv to get a new contract because i am a pre existing bough. He said i would just resume the rest of my 2 years with the 3g iphone. Is that correct or did I receive wrong information?
desolately he is right.. my brother bought his iphone before the 3g network come out also. goodluck



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