[ringm]

If you don't want to pay upfront for your TV or laptop, you just use a credit card. And what is even more important here, if you can pay upfront for your TV or laptop, you don't have to pay any interest. There's no reason whatsoever your network provider should provide you a mandatory loan for your phone with completely non-transparent conditions.

[pyre]

I think the point that is trying to be made is that the $500 price tag is influenced by the fact that most people buy the phone subsidized, and never see that price tag. I.e. if there was no phone subsidization, then there would be more competition on the actual price of the phone rather than just on the subsidized price of the phone.