The phone subsidies (in the US at least) are very reminiscent of the old leased phones of yore.

But if you look at the actions of mobile phone carriers and ISPs they're desperate not to become dumb pipes. They design all kinds of clever mechanisms and marketing strategies to distinguish themselves.

> Is there actually profit in providing more than that?

Well, in a free market, competition is intense. So if they can find ways to distort that, then yes: they will make more money. Many of us don't have much allegiance to particular gas station brands. But they create rewards programs to try and get some of that loyalty. Otherwise you just compete on price.