[jsz0]

It's not really new in the US either. You can buy most phones unsubsidized. iPhone 3GS is $599 from AT&T with no service commitment for example. Same problem with incompatible 3G frequencies though. The big problem is US carriers charge you basically the same amount if you take the subsidy or not. The only flexibility you gain is no service contract but due to competing wireless standards and frequencies you're still very limited in carrier choice. Google is using the same business model as everyone else.

[lutorm]

You can get prepaid if you don't have a service contract. It of course depends on your usage pattern whether it ends up being cheaper, but it's very common in Sweden.

[stanleydrew]

You can get a 3GS without a service contract from AT&T but won't the phone still be locked?

[jsz0]

Yeah probably but more importantly you're functionally locked into AT&T if you want 3G and anyone spending $600 on a phone presumably wants 3G service. So you're stuck with AT&T or stuck with T-Mobile if you get an "unlocked" Nexsus One.