Matt,
Yes, this is with new line and agreement. Also i have couple of ways to get out of thissituation:
Your way:
Total cost: $150
result: Your phone and fixed
Second thought
I was looking on
Ebays completed auctions , and found that you can get Brand NEW D807 for around $150 if you can bid correctly ( if you care for new vs used)
Third thought:
New line with D807 FREE and cash back $50
Cost : $175 ETF + $35 Act fee= $210 - $50 cash back= $160
Result: New phone with new number.
Condition: You can follow this only if you bought your broken phone from att direct store ( not from a dealer, then dealer will charge you also)
Backup Plan
If you dont want to get a new line or dont want to spend $150 to fix/buy another phone for now then you should
HERE to buy at prepaid phone for $9.99 just to get by for now and later you can go ahead and fix your phone.
I hope you will find this useful. Thanks