Oh my God! Are you serious?!?!?! You are a genious to figure that out!!!!

So $100 credit from $349 = $249. Their costs are $199 (8 Gb phone) and $299 (16 Gb phone) for NEW customers only. Since you claim to have threatened them with cancellation you must be an existing customer. Their costs for existing customers are $249 (8 Gb phone) and $349 (16 Gb phone). I am willing to bet that they are simply giving you the 8Gb phone for your $249 which is their normal price for existing customers.... you are not getting a good deal bud.

Well sorry to burst bubbles i was an existing customer and I went into a rogers store and said I lost my phone and needed a new one and they gave me a 16GB iPhone for 274 and I kept my existing voice plan and just added the 6Gig Data plan for 30 bucks. Well it was 324 -minus a 50 rebate in upgrading my phone. I have never really had a problem with rogers.

the pricing for new customers is 249 if you go on a plan under 35 dollars, if you are upgrading and are in the 249 you get a rebate that comes off after they verify that you are paying over 35 dollars as well>  its 199 for anyone so long as their price plan is right

Same problem. Existing customer for 16 months now. Bought my current phone private sale, called Rogers to activate and chose a plan. The service rep tried to give me a free phone, I denied. A month later I get a call saying the plan I chose placed me in a "commitment", they keep referring to it now as a "contract" I have never signed or agreed to a "contract", bad business as far as I am concerned.
I want to upgrade to an i-phone now. They have told me this in a recent e-mail:
"Many of our customers take advantage of our Hardware Upgrade Program.
(HUP) This program has five different price tiers and the range of
prices is calculated on your total wireless revenue since your
activation or your last upgrade.
- Tier 1: HUP price + $100 + $35 Admin fee (Wireless revenue is less
then $1000)
- Tier 2: HUP price + $75 + $35 Admin fee (Wireless revenue is between
$1,001 & $1200)
- Tier 3: HUP price + $35 Admin fee (Wireless revenue is between $1,201
& $1,500),
- Tier 4: HUP price with no admin fee (Wireless revenue is between
$1,501 & $2,500),
- Tier 5: HUP price with no admin fee and up to $25.00 discount on
selected handsets (Wireless revenue is more then $2,501)

Since you have accumulated less then $1000 in wireless revenue since
your activation the Tier 1 cost to upgrade to the iPhone 3G would be:

IPhone 3G 8GB $249 + $100 = $349 + $35 Admin fee

A 50$ credit is applied if you change your plan to an iPhone 3G Voice
and data plan or a voice plan with a monthly service fee greater then
$30"

I think there rates to upgrade are unacceptable and to include a $35 admin fee! I got some serious complaining to do!

I love how people sign a contract for the SERVICE and end up with a phone for say $100 which is acutally worth $500+-  and after treating there phone like shit expect the carrier to replace there phone at a super cheap price. incase you guys didnt know YOUR PAYING FOR THE SERVICE. If you want to use a different phone by all means do so but dont fucking cry when the carrier gives you a $700 dollar phone for $350.