[galadriel]

I would just like to add, there is definitely economical benefits in buying your own device, even in the US. T-Mobile offers a discount on contract plans, if you buy your own phone. While AT&T/Verizon/Sprint don't give a discount on their contract plans, all three have various prepaid options that are cheaper than contract pricing.

For example, T-Mobile has a $60 flat price for unlimited text/voice and 2 GB data, which is far cheaper than their contract price. Similarly AT&T Go-phone has cheaper prices.

Next, there are various MVNOs that resell service from the big 4, and they also have much cheaper price on prepaid. However, I have noticed that US consumer are almost universally unaware that such cheap plans exist. Part of it is that prepaid is seen as something used by people with low credit-worthiness, and other reason being that the subsidized contracts make it possible for far more people to have high end phone than normal. I have met quite a few people with iPhone, who would never be able to purchase it if they had to pay $700 upfront in store.

[beagle3]

I was one of the people who tried to get prepaid/pay-as-you-go plan for the iphone on Verizon by paying upfront. At the time, it was impossible, and I eventually gave up.

So, given that I did want an iphone, and therefore needed a contract, I tried to get one without providing my SSN. Those were another fun couple of days - it began with about 10 different Verizon employees telling me that would be impossible, and ended up with a $400 deposit and no SSN.

So, I paid for the phone upfront, but I'll get $400 back when the contract ends - as of feb 2012, that was the best deal one could get on the iphone 4s from Verizon.

And while it is easy to get coverage of any kind in NYC or SF, that is not true in general. T-Mobile's high speed coverage is lesser, and many of the MVNOs have a really limited coverage area (and non-trivial roaming charges outside those areas)