I've read in several places that a certain amount of your monthly bill to Verizon (15-20 bucks maybe?) is a hardware charge. So if I understand correctly, that's why you get subsidized pricing on upgrades, they get the balance of the phones retail price from you through this hidden monthly fee. Once you are eligible for upgrade or out of contract you are still paying this monthly fee for hardware but you aren't getting anything for it. So, to keep my unlimited, I have been buying phones at full retail and I still get hit with this monthly hardware charge. I think I read yesterday that AT&T has started reducing the monthly fee when you are eligible for upgrade or out of contract. It would be nice if Verizon would do that."