<i>The only thing that can break that cycle is a carrier that offers decent rates independent of a hardware purchase. This kind of carrier doesn't seem to exist in the US.</i><p>T-Mobile charges $20/month less for their "Even More Plus" contract-free plans. That makes it a better deal to buy the unsubsidized Nexus One for $350 more, because you can save $480 over the next 2 years with the same plan as the subsidized phone. And you won't have to deal with ETFs if you need to cancel.