iPhone for existing AT&T customer

When I visited AT&T online, the fine print said that the $199 price for the 8 GHz model is only good for NEW customers. Is it true that as an existing customer I have to pay $399? Also, if I buy an iPhone used, will I be able to use it? Thanks.

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yeah ....i just foudn out the same thing. for my wife and i to upgrade both phones it is going to be about 800.00 total. No phone is really worth that in my opinion....I am currently trying to give away my contract