The biggest difference is that it makes sub-$450 phones much more of an option. When every phone contract included a $450 subsidy, it didn't make any sense to

The biggest difference is that it makes sub-$450 phones much more of an option. When every phone contract included a $450 subsidy, it didn't make any sense to get a cheaper phone. You don't get cheaper than free. Now you can buy a basic smartphone for $100, and a pretty good one for $200. (IMO, cheap smartphones make the most sense if you can get on someone's family plan. It only costs us $15 plus tax per month to add another smartphone to our plan, which is within the means of everyone in our family, especially if they buy a budget phone.)