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Windows Phone 8.1, expected to launch in the spring, will be backwards compatible to Windows Phone 8.0



From Computerworld:
That means that smartphones running Windows Phone 8.0 will be able to run the updated version, assuming that the user's wireless carrier has distributed the 8.1 update to its customers.

"We will not have the same experience as we had when Windows Phone 7 was upgraded to Windows Phone 8," Greg Sullivan, Windows Phone director of public relations at Microsoft, said in an interview Wednesday at the International CES show here.
  Windows Phone 8.0 is upgradeable to 8.1, Microsoft says