When I pick up a phone that is locked, it comes at a discounted rate. I am explained that the phone company gives me a two year loan and that over the course of my two year contract, I pay back that loan. After those two years are up, does my bill go down because I am done paying off the loan, which is the phone, and left only paying for service?
No.
It doesn't matter if you have a subsidized phone or an unlocked phone, you still pay the same bill.
Telecommunications, including the cable industry, absolutely suck.
Not exactly. It's not a loan. The carrier is going to eat the extra cost of the phone with the knowledge that you will be with them for 2 years.
You buy a phone out of contract, the price for service is the same. The cost of your phone is not rolled into your service, it's eaten by the carrier to get you to stay for 2 years, knowing that in those 2 years, it has you as a customer.
All the whining is much ado about nothing. Carriers unlock your phones anyway as long as you don't owe anything (fulfilled contract obligations either by staying for 2 years or paying the early termination). If you read what the White House released, that's exactly what they support too.
You want an unlocked phone? They are available at full price now. Those prices are set by the phone maker, not the carrier. You want to whine and blame someone, shout at Apple, Samsung, Motorola and HTC for charging so much for their phones.
----------
Then make the sign up process more rigorous. Ask for the SSN or Driver license number, not merely a credit card.
In the US they do. They run a credit check, but the thing is, crooks use identity theft to get service.
Thing is, if you make the sign up process more strict, people are going to whine about having to give up their information.