Danish (and I believe EU) regulation has a comprise. Subsidized phones are legal, but 1) the longest time you can be bound by a "plan" is 6 month, and 2) all advertising must include the total cost of ownership in the binding period.

This makes it blatantly obvious to the consumer that the unsubsidized phones are cheaper.

Selling on credit is different than offering a loss leader and making it up elsewhere.

If they are "selling you the phone on credit", then it would be obvious to require (a) in bill, separate items for the telecommunications and for the phone payment; (b) in advertising, note the full price of the phone, including the all monthly payments+interest; (c) when the phone is paid in full (24 months?), then stop charging for it... rather than continuing the same bill forever.

Because that's not what they're doing? I can buy a car on credit, and it has nothing to do with my wireless service. I don't have to commit for the next two years to only buying gasoline from a particular type of station, either.