I agree. At the end of the day that phone is your property. You have paid for it either as Prepay or on Contract legally it is your. If they loose it then they would have to replace it....which is what has happened here. However even though they are giving you a better alternative, if you...
Unfortunatly no it wont as they are locked to the Tesco Mobile Network. It only works the other way around....O2 into Tesco Mobile.
You would have to get the phone unlocked but bear in mind that this voids your 12 month warrenty with Tesco if you have to get it repaired at some point. You send...