You pay at least $800-1000 for that $600 smartphone when you pay for it across 24 months instead of paying for it all at once.

I've never quite understood this statement. Aren't you still going to pay the monthly installments regardless of whether you were in a contract or not? On ATT, Verizon, etc, the non-contract prices aren't cheaper than the ones on contract.

So, at the end of two years, you'll be paying the same amount for your phone bill and have a subsidized device.

I have an iphone, but don't want a data plan. I pay $35 per month (Chatr, in Canada) for unlimited calling and texting.

I bought the phone outright. Most telcos would make me pay $80 per month over a couple of years to get the subsidized phone. A much more expensive deal for something I don't want.

Heck no! That would spoil the fun.

Nope! The best part is, if you bring your own phone (or hold onto one longer than 2 years) - no savings! You get to subsidize someone else's phone (or bonus). Frankly, this is something I wish the CRTC would sort out.

Imagine that you're heading out to a restaurant for dinner and getting a nice plate of nachos. However, at the start of your meal, you pull out a big bag of tortilla chips. You then tell the waiter that you've brought your own chips and don't want to use the restaurant's chips. I've known a couple of friendly restaurant owners who would agree to something like this (e.g. for allergies), but not one of them would have given a discount for it. The meal comes with chips, even if you don't want them or eat them. You're going to pay for their chips, even if you bring your own.

Most of the US phone carriers have the same attitude towards phones. Your cellular contract comes with a phone. If you want to bring your own phone, that's fine, but the price is going to be the same whether you use their phone or your own.

Thankfully, some of the smaller carriers are moving away from this attitude, but bringing your own phone can still be a major pain. After all, the only thing better for a salesman's commission than selling you an expensive contract in exchange for a phone is selling you that same contract and not giving you a phone.

No. In the US, you continue to pay your original contract fee (including overpriced handset payment) even after the contract expires. The handset cost is not broken out. After 2 years, the telco expects you to re-up a new 2 year contract and get a new phone.

Consumer mobile telecom in the US is fundamentally broken.

Well, that escalated quickly!

I wasn't thinking about the latest iPhone. I was talking about how some companies will chip in a "old" phone to get you to sign with them.