Depends what network you are with.
3 are happy to throw new phones at customers every year if you sign up for another year….so 1 year into a 2 year deal my other half usually rings up and asks for a new phone, 3 say ‘yes, but can you extend your contract by a year?’….GF says ‘yes’ and new phone arrives the next day.
Its ok if you are happy with the network but if she ever wants to leave then she’ll have to buy out her remaining months or wind down a 2 year contract.
I was with O2 for 12 years (when they were Cellnet!) and trying to get a decent phone from them was a joke…my ‘upgrade’ each year (or each second year, cant remember) would always be a step behind whatever was cutting edge at the time, my crappy old phones provided a great source of amusement for my friends….i think the free upgrades from O2 were just an excuse to get rid of old stock.
I’ve now switched to 3 and was given a choice of Nexus-S, HTC Desire HD, Samsung Galaxy-S or iphone-4 as my last phone….all phones i would have had to pay for with O2 the tight bastards.