I think newegg/amazon/radioshack/wirefly/ect enforce their own additional ETF if you cancel within 6 months and dont return the phone. I am not completely sure though.Buying it outright probably costs about $550 whereas you can get it free on contract then break it after 30 days and pay about a $350 ETF. Or does Verizon have safeguards against that kind of shenanigans? (probably)