Faulty Phones issued to loyal customers

I have a cellphone contract with Cell C. I took in my phone (Huawei P6) to Cell C in November 2014 for repairs and Cell C failed to fix it. They quoted me on a new phone, which i paid with no objections. I received the new phone (Huawei P6) in late December 2014 and it worked perfectly fine for 3 months, then it started to lose reception badly and the internet was not working anymore, it could not make nor receive calls and sms's. I took it in to Cell C, they are now quoting me on a new phone again, telling me that the old phones warranty is expired. How can they give me a ''Brand new phone\ on the warranty of an old phone which does not exist anymore?. Cell C has no respect for its customers. What will happen if i pay