"The reason it is not illegal to smash the phone is because it is your phone."
And because you have to either continue paying for service or pay a termination fee. In either case the provider is recouping the cost.
And because you have to either continue paying for service or pay a termination fee. In either case the provider is recouping the cost.
Isn't that still the case if I switch carriers?
It's not like a mortgage, where the bank technically still owns part of your home. It's a package deal. When you buy the phone, subsidized or not, it's yours. The US legislature has made it illegal for you to unlock the phone, despite that fact.