It is because they are subsidizing more cost of the phone.

Try breaking a contract with ATT on your new Iphone and see how much they will charge you.

Stewart


At 04:41 PM 11/5/2009, you wrote:
What a vote of confidence, to welcome the arrival of the Droid Verizon
is doubling the penalty for early termination.

"With a whole new line of smart phones coming onto the market, Verizon
Wireless said that starting November 15 it is doubling to $350 the
penalty fees for subscribers who leave their contracts early. "
http://www.washingtonpost.com/wp-dyn/content/article/2009/11/04/AR2009110404720.html?hpid=sec-tech

Once the Droid grabs you it won't let you go!

I guess they expect to have lots of unhappy customers wanting to flee.


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