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clipped from www.pcmag.com

Your Free Phone Cost $240

11.19.09

Think you're getting a cell phone for free? No way.

Your free phone cost you at least $240. T-Mobile wants you to know that. But is anybody listening?

The toys aren't free. Their prices are invisibly baked into your phone contract and then squeezed out of you if you try to get out of the contract early.
T-Mobile, My Heroes
introduced the first plans that let you strip out the phone subsidy.

If anybody cared about long-term prices, Sprint and T-Mobile would both be doing much better than they are right now. The iPhone 3GS and the HTC Hero on Sprint both look like they cost around $200. But over two years, with an unlimited talk plan, the iPhone costs $1,200 more. Yeah, sure, the iPhone is great, but is it $1,200 better than a Sprint phone? Really? Do you want an iPhone, or an HTC Hero and a 50-inch plasma TV?

Americans will ignore useful information and take the "free phone," which costs them more in the end.
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