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Why you think they were giving you the phone if you were not signing any contact with them?
If this went to court I am not sure that you will be believed unfortunately because cell phone companies only give phones for free to get someone to sign a contract. If it was to keep you there would be a contract because they need assurance that after they give you the phone you will not leave. This is just what you are doing now. You want the phone for free but want to leave.
At the same time if they sue you they have to prove you agreed to a fixed term contract and if you did not sign anything and if they do not have your recorded phone call where you agreed to the contract then they may not be able to win in court.
Unfortunately the phone is not worth anything to them now.
But you can try and take the position that not only did not you not agree to a contract and they never mentioned that to you, they are breaching the contract because they are telling you they can no longer provide the service because of where you will be living and so long as that is in Canada you have a good argument.