Verizon sent a text saying i can upgrade my equipment? What does it mean?

I'm an Alltel/Verizon customer that just upgraded. Here is how it works. Once you are with in 3 months of your contract you can renew it for another 2 years and upgrade your phone purchasing a new phone at the same cost as a new customer. If you are with in 6 months of your contract you can do the same thing for an aditional fee of $20.

I was with in 6 months and just upgraded from a pearl to a curve with jawbone 2 blue tooth for a total of $220

You dint have ti wait until your contract is up to change your rate plan, if it is a promotional one that you want it will just extend your contract. After you have fullfilled your contract they will give you discounts similar to that of a new costomer in order to get you to sign a new contract. I am not a big fan of contracts and dont recomend them at all. If your contract is up in October and you are happy with your service I would get a new phone from ebay with no contract instead of taking their contract extension. Bottom line they want you in a contract and will offer alot to get you in one. What you need to realize is that it is just a money game.

They let you upgrade before your contract is actually up, to keep you on. My contract is up on 5/2010 but I'm eligible for an upgrade 1/2010. If you use the online billing, it tells you when you're eligible.

if you renew your contract you can get a free phone

That's exactly what it means.