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I completely agree with you on this. AT&T does now offer non-contract plans that are more reasonable. Unless you are watching videos over phone lines, you won't really be using all that much data. I'm hanging onto my iPhone 4, which is 2 1/2 years old until it really has a major issue. It does have some intermittent problems, but I don't need to throw it away just yet. And there really isn't anything compelling me to upgrade.
I am wondering how much data tethering will use to the Model S.
I am wondering how much data tethering will use to the Model S.
Or, you could keep each phone for 6 months more and come out even, keep it for three full years and come out $300 ahead, and so on. Weaning yourself off the semi-forced upgrade cycle created by that $400 subsidy is not a bad thing to me... the amount of e-waste generated by modern society is obscene, and the lack of support for older versions of phones is ridiculous. A three-year upgrade cycle to save money may be a welcome thing to many people. Knowing the true cost of a phone will also cause less distortion in buyer behavior when purchasing, and phone makers may find themselves pressured to offer more affordable versions of their phones (or in the case of Apple, to lower margins).
We may disagree, but I'm entirely in favor of separating the cost of the phone from the cost of the service. Currently, if I don't upgrade every two years I'm still paying my carrier for the subsidy I'm no longer getting. Transparency is a good thing.