I understand about the past policy of ATT and buying an IP in regards to subsidizing the total price. What I don't understand this their 2nd or additional phone pricing.
My wife also have an IP. Actually she's on her 2nd (4S and now 4S). I'm only paying $9.99 monthly for her phone plus $15 for her 200mb data + taxes. On her first phone, after 18 months, she got the so-called free upgrade ($36) for her now IP 5S. And of course, we paid the initial $199 for each of these phones.
So, how is ATT doing this deal? On top of this, we sold her IP 4S for about $275.
Just don't understand the math on additional phones.