I _did_ pay that for an unlocked iPhone, because I wanted to use it while traveling. (The savings paid for the phone on the first trip I made, compared to the

I _did_ pay that for an unlocked iPhone, because I wanted to use it while traveling. (The savings paid for the phone on the first trip I made, compared to the execrable roaming/data charges I have experienced with AT&T in the past). But I think aes256's point is valid. That iPhone you buy with a carrier subsidy does not cost $199. In a fully-transparent world, you'd be able to bring your own phone and get a reduced monthly bill from your mobile carrier. Or you could buy a subsidized phone and pay more per month. In a fully-transparent world, of course, the mobile carrier becomes commoditized. They hate that. It can't come soon enough for me, as a customer, however.