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Three problem

Hi
Just wanted some advice on a problem I am having with Three. I have been with three for 3/4 years. My phone stopped working 1 month before the end of my contract so instead of waiting 3 days for it be repaired I upgraded. I was told that I should also request a new sim card as it could be faulty. The phone arrived on friday and then on monday I got a message on my phone saying "inactive sim".
I contacted 3 and was informed that becuase a new sim card had been issued the old one was cancelled. I was not told this was the going to happen. As I was travelling I would not be at the billing address and also could not have a sim card sent out. In order to speed up the proccess I was told if i went to a 3 store and buy a pay as you go sim card they would get my calls forwarded to this number and get my contract onto the sim in 24-48 hours. Went to the store and did this with the manager.
After 48 hours I phoned them as it had not happened and was told that technicaly this was not possible. Nothing can be done. When I said I wanted to cancel the new contract I was informed this is not possible as I have used the phone. What are my options? compensation?

Thank you so much.

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