Oy FINALLY people are catching on to this. Ive sold cell phones since 2002 and here is the deal:<p>Basically non t-mobile, verizon or whatever stores are independent stores. They buy a phone, say for $500. Then a contract gives them a spiff for it, say $250. So the store charges you $300 for the phone and makes $50 off the sale. IF you terminate the contract with t-mobile or any of these companies before your contract is up AT ANY TIME, that $250 is not paid to the store, or is deducted from what the carrier owes the store. Basically the store (like google) MUST charge you $250 or they lose more money than they made off of your sale.<p>This is why the little cellphone stores make you sign similar agreements. Now how the company recoups the "price of the phone" by early termination fee, I don't know. The fee is pure profit for the carrier.