So, at the end of two years, you'll be paying the same amount for your phone bill and have a subsidized device.

For example, since I'm sharing a plan with my family, the ATT contract comes out to around 20% cheaper than a similar contractless byo device Virgin Mobile service for iPhones, upgrading only after the contract is up.

Trust me, you're being ripped off.

That's just because of how ubiquitous the subsidized phone model already is.

I bought the phone outright. Most telcos would make me pay $80 per month over a couple of years to get the subsidized phone. A much more expensive deal for something I don't want.

Most of the US phone carriers have the same attitude towards phones. Your cellular contract comes with a phone. If you want to bring your own phone, that's fine, but the price is going to be the same whether you use their phone or your own.

Thankfully, some of the smaller carriers are moving away from this attitude, but bringing your own phone can still be a major pain. After all, the only thing better for a salesman's commission than selling you an expensive contract in exchange for a phone is selling you that same contract and not giving you a phone.

Consumer mobile telecom in the US is fundamentally broken.

I wasn't thinking about the latest iPhone. I was talking about how some companies will chip in a "old" phone to get you to sign with them.