Cellphone carriers claim part of our bill is to pay off the subsidy given when we sign a contract. HOWEVER when we have paid back the amount they paid on our behalf, or when we buy full price to be off contract or even bring our own phone, the rates are the same.
Carriers should be required to make cell service and equipment fees two separate items. They can be allowed to set a minimum payment toward the equipment cost (say $10) but consumers would have the right to pay more if they like. And once that line item is zero the line is 'off contract'. If the consumer wishes to change carriers they have to pay off whatever is left on that equipment fee. Said fee would also be exempt from all taxes other than sales tax as required in the state of purchase.