I figure a SmartPhone that is sold subsidized at $199 with a two year contract works out to about 10-15% of your monthly bill but it depends on the actual cost the carrier pays for the phone and the monthly package costs. So it would translate into a modest savings if the carriers actually discounted the packages on non-subsidized phones. They do not. So you're paying that extra 10-15% either way. Doesn't seem fair to me.
The added competition of customers not being locked into contracts is defeated by competing standards. Many GSM phones won't work on T-Mobile's 3G network and most of the handsets engineered specifically for T-Mobile don't work on AT&T's 3G. An unlocked CDMA phone would fair better since you would have legitimate choice between Sprint & Verizon. What we really need is an unlocked GSM/CDMA hybrid and we might see some real competition.
The added competition of customers not being locked into contracts is defeated by competing standards. Many GSM phones won't work on T-Mobile's 3G network and most of the handsets engineered specifically for T-Mobile don't work on AT&T's 3G. An unlocked CDMA phone would fair better since you would have legitimate choice between Sprint & Verizon. What we really need is an unlocked GSM/CDMA hybrid and we might see some real competition.