Each Carrier will allow customers to ?upgrade? their phones (handset) at some point during their agreement.  If you qualify for a carrier upgrade, you?ll likely receive a discount off the normal retail price of the phone if you agree to extend/renew your contract for an additional one or two-year term.  Each carrier has different upgrade policies, but most will require that you are at least 12 months into your contract term before they?ll offer a discounted upgrade rate.