vzwinagent said:
Sure you get something, the option to walk away at any time without penalty. Them giving you discounted equipment is for your guarantee to stay, nothing else. You don't sign the guarantee you don't get the discount. So you are gaining the right to leave with no penalty. It's basically an even trade either way. You agree to stay and get a discount, or pay full price and can cancel when you want.

I don't see why it has anything at all to do with service. The whole equipment discount is just about them being guaranteed to have you for 2 years and make enough money off of you to gain back the discount. We all know companies are about making money.

Cost of buying a smartphone unsubsidized: $400 more than getting a subsidy. AND you are GUARANTEED that you will have to pay the extra $400 for the phone.

Cost of jumping ship after buying a subsidized smartphone: $350 maximum, but with the sliding scale ETF, it could be way under $250 after only a short portion of the contract.

And the cost of monthly service is the same.

The carriers have concocted an environment where it is actually cheaper to have a contract than not have one, even if you decide to jump ship 1/2 way through each 2 year term.