Subsidized phones help more people get cool phones, but they're evil in the way no-money-down mortgages are evil. Most people don't think about what they're really paying, or what they're really overpaying. Just like with mortgages, mobile carriers charge more than a phone is really worth and drag it out over two years. But research generally shows that American consumers react to up-front prices, no matter how deeply they'll be in the red down the road. --Sascha Segan
I haven't researched this personally but this PC Magazine Opinion article reports that T-Mobile is the first carrier to allow the consumer to pay the full price for the phone up front rather than to have it buried as a hidden cost in your plan contract, allowing the buyer to compare the real costs of each option. If consumers cared enough to take advantage of the plan, other carriers would have to follow suit. It would be nice to see vendors begin to follow Google's Nexus One business model and offer the phone with or without a service plan, allowing the buyer to shop for the best plan deal.
Anyway, Mr. Segan's "truth-in-billing" idea is right on. The consumer should be able to comparison-shop by parsing plans for subsidies and other fees and supposed taxes.
Read the full article for more: Your Free Phone Cost $240
