Users are locked into strict 2-year contracts when purchasing a new phone at a subsidized price -- say an iPhone for $199.99 instead of the full price of $649.99. This I fully understand; the company needs to recoup the wholesale cost of the device through the contract (which is less than the consumer price, but regardless...). My question is, why is it that after the contract is up, the plan rates remain the same and not go down since the device is now "paid off"; and why do people who buy their own phones pay these same "subsidized device" rates? Seems like AT&T (and all others) are having their cake and eating it too.
Also, why aren't text messages charged by the data they use instead of the flat cover charge which is disproportionately high (in the neighborhood of 3000% higher)?