Most carriers here no longer subsidise the phones. They generally offer the phone at full price which can be paid back in instalments over 24 - 36 months, making it effectively a no-interest loan. The downside of this loan is that you need to sign up for a mobile plan for the same term, often forgoing other discounts available to you, or impeding your ability to switch carriers should a better offer arise. I have been able to negotiate a sizeable discount from my carrier and would be worse off acquiring my phone on a plan.