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The CEO of T-Mobile recently announced the end of contracts, allowing customers to pay for any phone they want upfront, like the HTC One, Galaxy S4, or iPhone 5 for $100. This new approach is expected to lower monthly bills and give customers the freedom to switch carriers without penalties. However, it highlights that phones are more expensive than they seem, with carriers offering subsidies in exchange for locking customers into contracts. Buying a phone outright can be a more expensive option.