Not like they used to, mostly. They just replaced “contract” with “equipment payment plan”. Because $50/mo for 24 months is easier for a consumer to swallow than a lump payment of $1200, especially when the carrier is giving you a $10 or $20 (or more) “discount” on the phone.

But as long as the EPP is active, the phone is locked to that carrier. And I think that’s fair. No different than the bank holding the title while you finance a car.

The thing is that the plans that have these equipment deals are significantly more expensive than others. Namely big name plans like TMo or Verizon, compared to MVNO plans like Mint or Visible. So you end up paying more for the plan because you get “a deal” on your phone (but still end up ultimately paying more).