A Discounted Upgrade
The details of this haven't been released yet, but in the past, carriers have generally allowed their current customers to upgrade to new models at the discounted price. To do this, you'll sign a new two-year agreement replacing your current one (i.e., two years from the date of signing the new one, not extending the old one).

iPhone 4S

The full price of the iPhone 4S hasn't been revealed yet, but expect to pay $200-$300 more than the subsidized price.
Contracts Reset for Current iPhone Owners, If you upgrade you'll have a new two-year agreement.

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