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Yes they do, because they don't have a choice.

If I pay $570 for an unlocked Nexus One to use on AT&T's network, I still pay the same monthly service price as my friend who bought a $99 subsidized iPhone.

I get no advantage for my nice unlocked unsubsidized phone when the current pricing model is based exclusively around subsidized handsets.

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T-Mobile has significantly reduced prices for their "Even More Plus" plans which do not include subsidized phones. This is saving me about $20/mo on my Nexus One, which I purchased for the heart-palpitatingly low price of $529. If I keep it for 18 months, I'll get back around $350. Unlike my G1, which was slow and had poor battery life from the beginning, the N1 is a fantastic phone from the start. I can definitely see myself keeping it for more than 18 months.

I'm in the same boat. Not to mention that the plan that you get with the subsidized N1 on Tmo is not only more expensive but it's (of course) also the gold-plated "unlimited everything" that most people probably don't need.

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