Wow! That will save you a lot of money. Imagine if you've been with AT&T using your 3G for 11 months, you'd only have to pay a pretermination fee of $120, add the $199 subsidized price, it's going to be $319 initial cost for you to upgrade. That's a lot of savings from the $599 without contract price that the iPhone 3G S is currently going for.
I think it depends on your carrier, because I've talked to a few people who are not eligible if they cancel with certain companies within certain guidelines. Plus I think it would depend on the cancellation policy of your carrier. If its going to cost you more to cancel then obviously its not worth it.
This is a big discount, selling and canceling your contract for a new iPhone 3G s. It's a good idea but if the availability of iPhone stocks is maxed out you'll be stuck with out a phone.
