I think it's fair.
They should let you out of the contract for a good reason.
What kind of smart phone are you using?
I started using smartphone almost a year ago. I bought the 6600, after 9 months, there's some problems with the connector to the phone...since there's out of stock for the 6600 and my service provider replaced me the latest 6700 that supports highspeed wireless and the better designs without signing any contract...I was happy too.