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You can do an AOL without paying an ETF. You won't get a new phone your contract will stay the same. If you started a contract in Oct 2011 you will eligible for a discount upgrade in June 2013.
If you really want to cancel your line then you wouldn't do an AOL you'd just have to sign up as a new customer after you cancelled the line since your name isn't on her bill. If you have a smartphone the ETF is $350 minus $10 a month for every month you have already finished on the contract. So that would be roughly $230. If you have a basic phone it would be $175 -$5 per month. Or about $105. If you went this route I'm not sure you could keep your same number.
Ok, thanks. From what you said, it would be best to just help her get her bill down and wait till June for the upgrade. Not really worth spending over $200 just to cancel my phone.