No, that's not definitely true. It very much depends on one's grandfathered account. That is why ATT is ending subsidies even for grandfathered accounts.
Take me as an example. I have a grandfathered ATT 350 phone/rollover/free night & weekend + unlimited data account. With taxes it runs me $85 per month. Cost of subsidized phone was $399 or about $16/mo over 2 years. Total out of pocket is $101. But, of course, I sell the phone at the end of the contract and recoup about half of that so end cost is more like $93/month.
If I decide to stay w/ ATT I can keep my plan but will have to pay full price for my phone like everyone else. So effectively that is a $35/mo price hike, or no difference than what non-subsidy customer are paying.
The same plan for a no subsidy customer is $60 for the unlimited plan + $40 access charge + $849 ($35/mo) for the phone. Total pre-tax out of pocket is $135/mo. Even if you can get $400 for the phone after two years it's still significantly more than under the old subsidized plan.
I wasn't arguing whether one method is cheaper than the other.
All I was saying is that the "free" phone isn't really "free"
Someone is paying for the phone... and it's not the carrier. So that leaves you