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.
Buy unlocked phones people!
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.