Here's the thing about that... if I buy my phone outright, I STILL get the same rates for services. Ultimately, you get a FAR cheaper phone if you simply subsidize it--with the only true downside being that you are then forced into a contract that says you can't leave for a pre-determined period of time (some 2 years, some 1 year). I know Sprint used to give me the option to choose No plan, 1 year subsidized and 2 year subsidized for just about every device--but Verizon only offered me a 2-year plan with my Droid and for any other phones they kept trying to get me to upgrade into. The main point being--you don't actually pay any less if you don't subsidize.