upgrades schmupgrades.... why is it so expensive (or you have to wait)??

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How many of you have been stuck in this position - you have an annual contract which renews every year or every two years. Your phone breaks or you want to upgrade early. They want to charge you an arm and a leg just for a comparable REPLACEMENT! Why is this?? For someone brand new without a contract, you can find almost any phone FREE with a new 2 year agreement! You'd think that an existing customer should just be able to extend their contract (remember, what is the point of a cell phone without service anyway?) an additional year and get another free phone. Also, you would think that companies want to KEEP their customers and not lose them to another provider who might offer a better deal! If you know of a provider that does not dink around with you and does offer something, fill me in. I don't think I'll have a problem because I have ins on my phone, but I did have to pay more for upgrading because I hadn't waited 18 or 24 months....