You sign up for a new plan and purchase a new device (often on an installment plan).
If your current monthly bill is high or your service is spotty, a buyout is a fantastic "get out of jail free" card. You get a brand-new device and a fresh start with a carrier that actually covers your neighborhood.
The good news? Many major carriers are so eager for your business that they will literally . Here is how you can make the switch without breaking the bank. How the "Contract Buyout" Works