[Proud_USA_Republican]

And about every other carrier I know lets you sign up for one year contracts, like T-mobile. Makes it easier for those who like to upgrade phones for better or newer models less than every two years.
With AT&T, before the two years is up, you want to upgrade to a different phone, they charge you double to triple the price of what the phones costs to new subscribers. Upgrade to a different phone, they also force your contract to restart another 2 years.
It’s a ugly vicious cycle only a communist could love.

[Lurking in Kansas]

That's why my last 3 phones are 'unlocked'. I buy my own. My 'contract' expired years ago.

Buy unlocked phones people!

[TheBattman]

I think you misunderstand how the system works (and yes - they do want to lock customers in to a contract). Most phones actually cost a LOT more than the price we see at a retail establishment. But most carriers subsidize the cost of the phone. If you buy a brand-new phone at the full price - you will be shocked at the cost. I remember when the Motorola Razr first came out - it was all the rage, and WITH a contract was usually somewhere north of $100. Without said contract, it was somewhere around $300. This more represents the price. But to lock you in, the carriers give you a price break by basically paying for the largest chunk of the price. Even the lower-end "free" phones actually cost the carrier $150+ each. So of course, it is in their best interest to lock you in with a contract. All phones that I know of (now) can be purchased at the "full" price without a contract.

I have even seen the same kind of deal with netbook computers. Comcast here was giving them away for signing a 24 month contract for their home internet service. You can go out and buy a comparable netbook for somewhere around $299.

Consumers have decided they want the cheapest price (at least on the surface), so the producers have taken them up on the offer - by subsidizing purchases. If people quit falling for these "low prices", then those same businesses would quit the practice. There is nothing nefarious about it. Capitalism at work, plain and simple. I doubt communists would love it - they don't like the market being driven by demand. We have a choice. Communists don't want choice.