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Nope, numbers go into a dead zone for 6 months or so if you dont port them out or upgrade.
Thinks he's trying to avoid an upgrade fee. Get your PAC code and shop about, there are much better deals out there than anything most upgrades will offer.
Phone up the cancelling line and say you shouldn't have to pay more than a new customer and that you can get a better deal on vodaphone, they'll credit your account with the difference