How does a mobile carrier make money?
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The Secret: Why do carriers give away 'free' phones?
Installment deals tie you to the plan for ~2-3 years. The 'free' phone is usually monthly bill credits that offset installments over 2–3 years. Cancel early and the credits stop while the remaining balance comes due. The phone buys a long, predictable subscription. Source: Verizon – Mobile device deals and promos FAQs
Why They Stay: Why do family plans churn so little?
Everyone's lines and devices would have to move at once. Multi-line accounts multiply the switching effort, so they churn less. That's why carriers discount extra lines to pull whole households in. Source: Fierce Network – Carriers sharpen focus on family plans
Why They Leave: When does a carrier lose its hold on you?
When your phone is paid off or a promo ends. Until then, leaving means paying off the phone and losing the monthly promo credits. Once that's done, nothing holds you but habit, which is why rivals pitch switchers just then. Source: Verizon – Device payment agreement FAQs