Understand the big picture
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| Published: | 2014-Mar-01 |
| Last Updated: | 2014-Mar-25 |
| Principal Writer: | Barry Shatzman |
 | Understanding The Issue |
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 | The Rumor Mill |
Unlocking Technology Act
2013 (HR-1892)
Unlocking Consumer Choice2013 (S-517)
Unlocking Consumer Choice2013 (HR-1123)
DMCA1998 (HR-2281)
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Don't providers have an interest if they subsidized the cost of the phone?
The subsidy by the carrier is effectively a loan. The cost of repaying that loan is built into the monthly service fee that you pay over the duration of your service contract (typically 2 years). Therefore, the carrier has been fully reimbursed for the cost of the phone by the time your contract has ended.
Alternatively, you can leave your contract early by paying the termination fee specified in the contract. This also reimburses the carrier for the cost of the phone.
Either way the contract is completed, and your legal obligation to the carrier comes to an end. The phone is simply your property.