Yes, but because T-Mobile has started shaking things up over here, I believe most carriers are beginning to offer cheaper off-contract plans that do not subsidize the devices.
They keep paying the same high rate for no good reason.
This is how no-contract plans like the one T-Mobile offers work. They offer no phone subsidy, but their service is cheaper in general. They do offer 24-month payment plans for the device at not added cost or interest charges. Once you pay it off, your monthly payment obviously becomes cheaper. This is really how it needs to work. Contract plans are just plain robbery.
Right, so why is it a waste of money to renew the contract and get a free phone out of it if he plans on staying on that plan anyway and would otherwise be paying the same amount?