The business model has always been to make the profit on usage, not on the phones. (When Cingular - now AT&T mobility - was trying to get into the NYC market, they were offering dealers unbelievable prices. The Razr V3 was about $525 and IIRC, they were paying dealers $575 for getting the customer on a 2 year contract - you could have given the phone away for free and still have made money.) I can see TMobile trying that now - then finding out that, with free this and unlimited that, they aren't making any profit. (Back in 2004, even voice was limited. And with cellphones still being relatively new, a lot of people were running overage every month - which really cost the carrier nothing, but they charged you a ton for it.)