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I'm postpaid EM+ . You can buy a phone with payments on the plan, but mostly you either pay full price, buy unlocked or use Ebay.
Your new phone would have to match your plan. If you have Grandfathered TZones, a new Android might not work. You will get the message that you need to update your data plan. If your new phone is equivalent/dumber than your current plan, you should be OK. They should just switch. They do offer different phones if yours has a problem, but they will be equivalent or lesser. I don't remember anyone complaining about changing SIM. Just that they didn't get the phone they wanted.
On a contract you WILL have to have a data plan if you have a smartphone.