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In a recent event in New York City, T-Mobile's CEO announced the end of contracts, allowing customers to choose any phone, including popular models like the HTC One and iPhone 5, for just $100. This new model suggests lower monthly bills and the freedom to switch providers without penalties. However, it's important to note that the actual cost of phones is often underestimated; for example, an iPhone 5 costs $200 with a carrier's subsidy but $650 directly from Apple. The subsidy model involves a significant upfront discount in exchange for a contract commitment.