REPLY to jmccrane If you consider phone subsidies (about 100.00 per phone NOT INCLUDING REBATES), someone other than the customer is paying this subsidy for the customer unless you actually believe that Kyocera can design, produce, and ship those phones for a penny a unit. "commissions for the sales channel that sold you the service"...$200 dollars to a Radio Shack or more or less to a verizon employee (not counting salaries for Verizon employees.) 200 commission + 100 equipment subsidy= 300.00 40.00 rate plan (Average ARPU in the US) x 12= 480.00 480-300=180 that 180 dollars "so-called-profit" per year is what is left over for the carrier to maintain and improve your cellular signal, train their call center staff to accept your abuses, and move to next generation services, not to mention pay all the other bills. On average across the US the average cellular call is about three minutes and the average usage per user per month is right around 400 minutes. Companies base their rates on averages, trust me that when a company comes out with an unlimited plan, or an unlimited N&W plans as Sprint just did, they are basing their ability to do these plans by average usage across the board. There are many factors that contribute to the actual cost of airtime. 1. Infrastructure (Cell towers, and Equipment, Multi-million dollar switches) 2. Wireless Spectrum (FCC licensing) 3. Back end cost (T-1 or microwave links to the MTSO or switch) 4. Long Distance cost 5. Interconnect cost (each time a cellular phone dials another network interconnect fees are charged by that network to the cellular operator connecting the call.) 6. and so on and so on.... I have been a Sales Manager in Wireless for many years, and understand that you have to spend a buck to make a buck, but if you sign a contract to get a phone at a reduced cost, and service for a set amount of time, hold up your end and just pay the disconect fee when you decide to leave early.