> There is certainly precedent for this type of sale. Look at TIVO and
> ReplayTV. Both have a monthly (or optional lifetime) activation fee
> which, if not paid, turns the unit into a hefty doorstop. One might think
> that only the channel guide info would go away but actually the whole unit
> just goes to sleep till you pay up. However, unlike the iPhone, these
> units were sold at subsidized prices.

What this has to do with the NY state political appointee who's a shill for
Verizon going on the attack against Sprint I can't imagine... but

1) Whether you want to call it "subsidized" or not, Apple gets a $100 bounty
plus a cut of your monthly AT&T service fee. Without that, it would cost
potentially hundreds of dollars more.

http://www.usatoday.com/tech/news/20...n-iphone_x.htm
http://www.ilounge.com/index.php/new...-and-vodafone/

2) Numerous reports state that you can activate the iPhone, then simply
cancel AT&T service within 3 days and pay nothing (not even activation). The
iPhone still works after that as a WiFi browser, email client, and music
player.

http://alexking.org/blog/2007/07/02/...ithout-service

3) You can indeed get an iPhone without a contract. If you don't meet credit
standard, you can use your iPhone with an AT&T prepaid plan.

http://www.tuaw.com/2007/07/02/iphon...the-right-way/