until recently, most phone companies offered their costumers substantially discounted handsets in exchange for a two-year contract. when costumers signed up for a contract, they got a steep discount on their phone – known as a subsidy - but they were charged much higher monthly rates in order to make up for that subsidy. the phone companies priced the plans in anticipation of their customers’ cellular service usage to ensure they achieved their targeted profit. although at first glance, the subsidy offers looked very appealing, the hidden extra charges on the plans added up to much more than the actual price of a phone. recently, t-mobile, at