Cell phone companies can subsidize phones because they know we're locked in for 2 years.
The 2 years lock in contract was to ensure that the phone companies had a reliable client base in the early years of cell phone usage so that they could invest in expanding the cell phone coverage area without fear of the technology going bust.
And while that was an understandable stragedy back then, with the popularity of the cell now it's just a way to make an extra buck on people who want to switch providers because of bad service.
On a side note the 2 year contract is the MAIN reason I won't switch from cable to FIOS. Even though it's been in area for 3 months now.
Eye 4N Eye
Opinions are like A**holes, everybody has one and they usually stink
(all except mine of course)