Verizon CEO McAdam is thinking about ending subsidized pricing
when he said that ending subsidies would be a great thing. T-Mobile last month eliminated two-year contracts and subsidized phone pricing. Customers fork over a down payment and pay the remainder off in monthly installments. However, as we pointed out last week, while there might not be a contract binding you to T-Mobile for 2 years, the mobile operator will not unlock the phone until it is paid off. Essentially, this means that while you can leave T-Mobile at anytime, your phone can't until it is paid off. Customers of Verizon, AT&T and Sprint can leave before their contract expires, but would have to pay an early termination fee.
Besides Verizon, AT&T might also be leaning toward ending subsidy pricing. CEO Randall Stephenson said back in January that he found contracts-free pricing to be interesting and something that he will monitor to see how the market receives it.