Proposed law would require carriers to sell contract-free phones {Engadget Mobile}

Feb 27th 2008 4:21PM The bill sounds good in theory but I'm not sure how much it would benefit consumers. Major carriers already sell plans that do not require a contract--they are sold under names likes Prepay, Pay as You Go, or FlexPay.

And I'm not sure why you would want to eliminate the subsidies. The subsidies actually REDUCE the price of the phone to the consumer. For example, you can buy a BlackBerry Pearl for $270 from NewEgg or you can get one for $99 from T-Mobile or AT&T when you sign up for a 2-year contract. That is a real savings of $170, which is a subsidy that favors the consumer.