Edge and Next are good for the corporations but are they good for the consumer?

Question

Ok so I have never paid full price upfront for a phone!  Ever since my first phone from VoiceStream I have opted for what ever phone was "free" because way back then (I blush as I type) I actually thought the phone was "free!!!" Ah, to be naive again!! But as we all know the phones never were nor will they ever be free. 
However I say programs like Verizon's Edge and AT&T's Next are good for the corporation if they weren't they would not exist.  The first reason I say this is because Edge and Next allow the cellular service provider to easily recoup the entire cost of the phone in a clear way unlike with subsidized phones that muddy the profit water.  For example, the Verizon 64GB iPhone 5s retails for $849.99, currently with a two year contract you pay $399.99 for that 64GB iPhone 5s.  The EFT for that phone is $350 (minus $10 per month of post paid service).  If you on the 15th the day after you got your phone you paid the EFT but kept service you only paid $749.99 for that $849.99.  Sure you still pay for service but you can leave when ever and Verizon cannot say hey you owe us $100 more for you phone.  Its yours and they can't take it back and the only way Verizon will get that $100 back is though another customer  that subsidized a much lower cost phone that at the completion of that contract Verizon will  more than recoup the cost of that lower priced unit. To top that off you could turn around and sell the phone for $800 go back to Verizon or another provider buy a $450 phone and break even.  I'm not suggesting that people do that or that it may prove to be a big hassle for some that went through all the trouble.  Its just a point to show that subsidized phones make the profits less clear for the service provider to see at first glance.
Second reason these programs are good for the corporation is they allow the service providers to get a better grasp on the true cost of maintaining their networks and providing us the consumer access to their networks.  Third reason it good for the corporation is the people that feel the need to upgrade every six months to a year are required to pay at least 50% of the retail cost of the phone at the same time they must surrender that device in exchange for the new device.  So the service provider then has the phone refurbished certified to be in "like new condition" and sell it again potentially making more than retail cost when the profits of both sales of the same handset are factored together. 
That being said what will the impact of programs like Edge and Next have on cost of future cellular service plans and smartphones?  Over time will the service provider give us the best per line access fee (not likely but maybe)? Or will people upgrading their smartphones at faster intervals cause the cost of the smartphones to drop over time? What are your thoughts?

Answer 1

Go to the link I provided and click on "Check upgrade eligibility"