Will cell phone costs go up, contracts go away?

BALTIMORE - If you want a new smartphone, you may want to buy it soon. Experts say carriers could gradually start charging more.

Why? To phase out smartphone subsidies.

Right now T-Mobile is the only U.S. carrier to do away with contracts. AT&T, Verizon and Sprint have all said they're watching to see how successful T-Mobile is.

Carriers can lose a lot of money when a new phone comes out. You pay a discounted price when you sign a contract, and the carrier eats the rest of the cost.
 

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