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You are partially correct.
When splitting off a line via AOL, you are taking over the contract currently in effect. As a result, you would NOT be eligible for discounted pricing on a phone. Additionally, when perfoming an AOL, if your current contract has less than 1 year left, it will be extended to 1 year total. This used to be the case, I am unsure if it still is. Regardless, you would have AT LEAST until July, 2015 before you were out of contract and eligible for discounted pricing.
As to Edge, you would have to qualify for Early Edge as you are a new customer and it would be dependent on your credit score. You would have to turn in your current contract phone in good working order without any physical damage, too. The Edge phone would be paid for at full retail cost with equal payments spread out over 24 months and the full tax paid up front.
