iPhone 3GS - Existing O2 Number

I thought networks only allow you to transfer a number from another network to theirs (example: t-mobile to o2) and not o2 to o2 unless you buy an upgrade contract.....
 
You can port any number on o2, I was told that I could not transfer a number from o2 contract to o2 contract, the nice guy gave it a bash and found it does actually work though customer service still try and state it wont.
 
Don't know if it's different for PAYG, but when I bought a 3Gs in an O2 shop with a simplicity SIM, they switched me over to an iPhone contract there and then, didn't have to change anything.
 
I did the online form and it failed for some unknown reason. Phoned up customer services and they sorted it. Number and credit ported. The only thing I know that doesn't port is 'My number' in the phone app. Fixing that requires a second phone (which is not an iPhone).
 
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