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Sprint PCS deals for existing customers?

I've heard you can get a new phone for free from a Sprint PCS store if you're an existing customer (after signing for an extended contract, of course). Has anyone had any experiences with this?

I dropped my phone in a river and it doesn't work anymore 🙂 I posted a message on the forsale group at work and someone mentioned the existing customer deal. I wanted to see if this is a common thing or if this guy got a special deal somehow.
 
they had the new sanyo 6400 for like $50 just a few weeks ago (no activation required), nice sexy slim phone too...
 
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