Well, almost nobody in the UK buys phones completely unsubsidized either. But people can and do buy at a wide variety of different points on the "razor vs blades" curve. If it's big news that an Iphone 4 is now $99 on contract, whether it's a $50/month or $200/month 2-year contract, surely someone can attract customers by offering their $200/month contract for $204.12/month with a free Iphone 4? Or are there regulatory reasons why not, like maybe guaranteed early exits from the contracts?

Peter