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You know, T-Mobile charges you less per month if you don't have a contract. Over the course of 2 years, its big enough to pay for a smartphone bought contract free.

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In the UK the opposite is true; if you have a contract you get better per-month costs, and over the course of 2 years it's often enough to pay for a smartphone bought contract-free.

I have just done this myself with a 24-month contract saving 6 GBP a month (making it 4 GBP a month, including 500Mb/month of data) which paid for a Milestone 2...

I think they meant "cheaper without a subsidized phone bundled" not "cheaper without a contract" it's just that the two are almost synonymous in the US.

The question to ask is: Are they inflating the pay-as-you-go plans to make the contract plans more attractive?

I know that's the case in the US.

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