So what's the deal with cell phone companies.

free phones are tied to a 2+ year contract. ~50/mo thats $1200 right there to subsidize the cost of the phone. Data cost nothing to the carriers....sort of like long distance to the landline carriers, its a cash cow. If you dont stream away from your house wifi, you can easily get by with <2GB of data and thats including using maps and casual internet use. if you get a BYOP account , get a cheap BLU phone at a retailer for $150, great phone no plan attached.