Thats exactly what happens in Brazil. All phones MUST be sold unlocked but they lock you in with contracts in order to get cheaper phones. However if you choose

Thats exactly what happens in Brazil. All phones MUST be sold unlocked but they lock you in with contracts in order to get cheaper phones. However if you choose to buy a "fully unlocked" phone, the prices have skyrocketed. (We have the most expensive iPhone worldwide, 16GB 4S = 1.2K dollars).