I'm no legal expert but as far as I understand, when you take a contact out and agree to the terms, that is your contract. They can change the contract with notice but you have to agree to them, if you do not, they either have to honour the original contract or cancel it. As they have breached the contract, they cannot charge you cancellation fees.

Changing the terms like this, is changing the contract you have agreed with and you are within your right to walk away without charge if they do not honour the original contract.

This does not suprise me with Vodafone though. Before I got my N900, I had a blackberry storm on contract with them. After a few months they contacted me telling me that my free sat-nav service was coming to an end, that they would extend it for one month and that it would cost 7.99(ish) a month to continue after that. As I do not drive and had other map software on the phone that I could use free, I declined to continue. However, they started to charge me for it. I queried this with them and whilst they investigated, I did not pay the bill (not gonna pay for something I didn't want or ask for) so they cut me off.

I called them to pay after it was sorted and they told me the bar would be lifted within 30 mins. 2hrs later, still nothing... anyway, 3 calls later they informed me that it was because I had a blackberry that it was taking so long and it would be 48hrs. Not happy but with not much more I could do, I accepted this. 2hours later it was working again!

During the time I was disputing the extra charge, they refunded me that part of the bill and "canceled" the sat nav, but the next bill and the same charge was there!!!!

In all it took 6 months and 30 + emails to actually cancel the sat nav I never asked for. I asked for compensation and all they came back with is "I'm sure you will give us another chance to provide you with excellent customer service"

I would never go with Vodafone for a contract phone again! I am so glad I waited for carphone warehouse to offer the N900 on T-mobile!