content: Previously, you could go to any major carrier store, and buy a new phone at a very steep "discount"  in exchange for signing a 2 year contract with that carrier. The new model offers cheaper service with no contract,  but you must pay full retail price for your device.  The new system is clearly better IMO,  because once you pay off your device(if you do an installment)  you get a reduced rate on service until you upgrade again. Previously, if you did not immediately upgrade at the end of your contract, you were essentially making extra payments on your device, as the higher rates of the contract were ostensibly there in lieu of an installment agreement. Further, the contract served as a measure of control against competition as it made users more reluctant to switch carriers even if there was a clearly better option. Now,  since all the major carriers have abandoned contracts,  they must directly price compete with each other as there is nothing stopping me from simply walking away the moment a competitor lowers their rates.