In alt.cellular.t-mobile Uncle_vito <uncle_vito2002@yahoo.com> wrote:
> When you sell the phone? Who wants a used cell phone with older technology
> when they can get a new phone subsidized by Verizon. BTW, if you are not
> going to change providers anyway, who cares about a contract?
>

The companies primary use for it beyond subsidizing the phones is to prevent
churn. That is why you often see "retail - $150" at Sprint PCS for instance as
the price for a new customer. They subsidize your phone by [at least] $150.
Of course, they make the early termination fee even higher and that difference
might be called a "churn inhibitor".

--
Thomas T. Veldhouse

America is the country where you buy a lifetime
supply of aspirin for one dollar, and use it up in two weeks.