When i buy new iPhone what happens to older one?

I have a iphone which is under contract of At&t and 2 years are still remaining. If i get new iPhone 4s and when i transfer my old number to new iPhone will the contract terminate and transfer to new phone? How can i terminate the contract from old iphone with less trouble as possible and avoiding the ETF?

Added (1). I want to gift my old iPhone to someone

Can I have your old one?

You can't terminate your contract with 2 years left on it without facing an early termination fee… Your number will stay the same

you can, however, upgrade your phone and still keep your AT&T service on your new mobile device…

my question is, why would you want to already terminate your contract if you have 2 years remaining on it?

You would pay the fee, and then also pay full price for the new phone unless you switch carriers, I don't think they will give you a new contract deal where they pay for the phone but you may have to ask them.

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