What happens when your contract expires?

I plan to keep my 3G and not bother upgrading to 3GS as my contract runs out in April so I would only have to wait 2 months for 4th gen. Though, I'm not sure what will happen during those two months as I've never been on contract before. Will they change the sim to run as PAYG or something else?
I'm on 02 by the way.

The iPhone 3G was released in July 2008...so the earliest the contract will expire is July 2010! When that happens, break the champagne bottle cause your contract with AT&T is over!
-Glenn

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