Here's an idea: What if they studied customer behavior and found that when the traditional 2-year contract is up people started shopping around with other provi

Here's an idea: What if they studied customer behavior and found that when the traditional 2-year contract is up people started shopping around with other providers to see if they could get a better deal, and an unacceptable number were then lost as customers? I'm betting this happened quite a bit, actually. With the new system when the two years are up (assuming the phone wasn't paid off before then) the customer automatically sees a nice little drop in their bill, which may make them feel more positive about staying with the company, or upgrading their phone again with the thought of "I was already paying that extra amount before anyway". Just a thought, but I wonder what kind of research has gone into this sort of thing.