What are the advantages of mobile upgrades?

I don't have a credit rating and can't get a contract on my own name.

My boyfriend is due for an upgrade on a samsung ace on the network Three so he said I could upgrade to a better phone. However, when we went into the shop the woman didn't explain what an upgrade means for us. I would like the new xperia z or an iphone 4 or something but how would that work?
Do I choose a new plan for texts and stuff or do I keep the same one?
Will I get a disount on how much I pay or is it just the same as taking out a new contract?

The only advantages of having an "upgrade" is getting to pick out a new phone. Normally the plan would still stay the same unless you decided to change it. Although, I don't know how you your plans work in the UK.

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