I'm just confused. Does your provider actually charge more monthly to use the iPhone 5? I'm finding this extremely hard to believe. It sounds like the iPhone 5 is $500 and then you typical monthly bill. In that case yes. Have a 4S, then sell it and pay the $200-$300 difference. Not have a smartphone at all? Then yes, it would be to me. What I get out of an iPhone is easily worth $500 over a year.