Changing IPhone 4S sim. Contact

Hopefully today my new sim is coming with a much better contract. I use a iPhone 4S and I'm wondering how can I do it so all my contacts are saved into the phone so all I do is change the sim and it's fine?
Best answer for clear and detailed method.

Contacts should be fine if only changing your sim but Back up your iPhone with icloud in your phone settings or save contacts using Google if you have an account is a good idea anyway

Use iTunes to back up the phone (completetly) - use your appleID and password

Then change SIM
and if it demands that you re-register / re-initialise, then you can restore it

If it is the same network, it should not need reseting
(in fact the network can just update your old SIM acciount with the new contract)

if it is a new network you will need to unlock the iPhone (old network SIM is needed)
and when the New SIM is put in, it will complete the unlock and 'may' do a reset

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