How cool is that? Will I be able to simply replace my old iPhone with a brand new one for free? Yes and no as certain conditions will apply.

If you purchased you iPhone after May 27th from AT&T then you will get a free replacement when the 3G iPhone arrives on July 11th. I wouldn’t understand why you did buy an iPhone 12 days prior to WWDC. Where do you live? And how did you know the iPhone exists if you don’t know what a WWDC is? And how come AT&T is that forgiving? Are they also returning some of the money you paid?

As for contract renewal with AT&T, it has been confirmed that once you go from the old iPhone to the new iPhone you will replace the old contract with the new one. That means you won’t have to serve a 3 year sentence with AT&T (1 year from before and 2 more years from your new plan) but only a 2 year sentence.