This is valid from a non-VZW person coming to VZW. For those already int eh fold, say, without a smartphone, that cost is much lower as many will end up staying with VZW anyways, and the only real increase was that new data plan, which is $720 over 2 yrs, much less.Uhh, thats the point of offering the cheaper phone with a contract, if you make $1680 from keeping the customer for 2 years (based on the lowest minute, no text, data plan) then scraping 250 bucks off the phone isn't too hard. especially if they have a 900 minute unlimited texting plan then it goes up to $2640 for 2 years!