Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Well with my current plan if I buy a subsidized phone I pay my base plan price plus $40 dollars per subsidized phone. By using an unlocked phone (or the Next plan) I only pay base price plus $15 per phone.

Right now, yes, but if they get rid of subsidies completely then $15 per phone is the new regular price.

Which they will then increase.

It's a cycle that never ends.
 
To each their own, but if you're not in a subsidized contract, having to pay off what you owe on the phone (and not a penny more) isn't a penalty to me.

I consider the Early Termination Fee a penalty because if you want to switch carriers after month #11 in your contract, in many cases you will end up paying more than what you owe on the phone.

After 12 months on ATT your ETF is $200. The phone cost $200 on contract.
 
After 12 months on ATT your ETF is $200. The phone cost $200 on contract.
Sorry, when I said "after month #11", I was running Verizon numbers. With AT&T, you get penalized after month #13.

# = number of months into the contract
TOTAL = if you cancel in this month, this is the total cost you pay for your phone. This is the sum of the next three columns.

MONTHLY = the accumulative amount of the $40/month you pay every month that goes towards your phone cost
ETF = the Early Termination Fee
UP-FRONT = the $199 you paid up-front to get the phone.

Code:
#	TOTAL	MONTHLY	ETF   	UP-FRONT
-	-----  	-------	---    	-------
1	$542.75	$18.75	$325.00	$199.00
2	$551.50	$37.50	$315.00	$199.00
3	$560.25	$56.25	$305.00	$199.00
4	$569.00	$75.00	$295.00	$199.00
5	$577.75	$93.75	$285.00	$199.00
6	$586.50	$112.50	$275.00	$199.00
7	$595.25	$131.25	$265.00	$199.00
8	$604.00	$150.00	$255.00	$199.00
9	$612.75	$168.75	$245.00	$199.00
10	$621.50	$187.50	$235.00	$199.00
11	$630.25	$206.25	$225.00	$199.00
12	$639.00	$225.00	$215.00	$199.00
13	$647.75	$243.75	$205.00	$199.00
14	$656.50	$262.50	$195.00	$199.00
15	$665.25	$281.25	$185.00	$199.00
16	$674.00	$300.00	$175.00	$199.00
17	$682.75	$318.75	$165.00	$199.00
18	$691.50	$337.50	$155.00	$199.00
19	$700.25	$356.25	$145.00	$199.00
20	$709.00	$375.00	$135.00	$199.00
21	$717.75	$393.75	$125.00	$199.00
22	$726.50	$412.50	$115.00	$199.00
23	$735.25	$431.25	$105.00	$199.00
24	$744.00	$450.00	$95.00	$199.00
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.