BT will (reasonably enough) hold you to the contract. I can only suggest you take out another phone/contract with them or another, and let a member of your family have the T2 until contract ends. That T2 is contracted to you until August 2011, unless you buy out, which would be the same package cost.
I would'nt be too quick to takeanother phone with BT though; check out the android phones offerred by other operators and do your sums. There are some v.good HTC android deals in the marketplace at the moment.
AQ. "Welcome to Royston Vasey - You'll never leave."