The answers probably will vary by country, but in the U.S., where I live, I'm not sure what the advantage is. Suppose that I pay $649 for an unsubsidized iPhone 5 16 GB. To recoup the $450, I'd need to find a plan that's at least $18.75/month less expensive than what I could get going the traditional subsidy-and-contract route. The forthcoming T-Mobile iPhone plan, for example, will save $20/month, so the savings over two years works out to $30. That's not a huge savings. So unless I can save a lot more than $30 over two years, what's all the fuss about?