There may be another way. Last week I email Telus and asked 'how much would it cost to buy out my contract and how do I pay this?' (I have 13 months remaining) I also asked 'Could I could continue service with Telus until I made other arrangements?'
Next day I received a call from a concerned Telus sales representative. (Got their attention) I told him that I wanted to end the contract but continue service with Telus until I made other arrangements. I also told him that my current phone (Razor V9m) no longer suited my needs and that the dying battery gives me about 15min talk time before I have to recharge.
He offered; That I could end my contract for $5.00 per month if I signed a new contract. Also I could keep my existing plan40 along with a data plan. I currently have unlimited incoming calls, 375min, caller ID, free weekends and evenings on my plan40.
So... I saved $195 for cancellation plus $80 for a new battery for the Razor. Now I can get the i phone 4 with a 3 yr contract. It was $65 to cancel my contract early btw.