Yes, there're plenty of stores in China Town give out the phone for free with 1-year contract. Over 90% of the store you walk in randomy in China Town will give you such a deal.
So as some Russian / Jewish stores in Brooklyn, NY do that.
The catches are:
1. Some of them hold a credit card authorization for $200-$300 for the phone. If you don't maintain 6 months to 1 year of service, they can charge you for the phone.
2. Most places won't allow return or no more than 3-7 days return . Though the carrier may allow new cust to cancel the new service within 14-30 days if they are not satisfied, these places who give out the phone for free will require you to return the phone to them or they will charge you $200-$300. Check before you buy. Every store's policy on return varies. For sure it's different from the carrier's policy.
3. They make copies of your SSN and drivers license, and I don't think they have "Privacy Policy" or procedures in place. They have your date of birth, copy of IDS. God forbid if such information get lost or mistreated. yes, everybody do that, so it's 1 in a few hundred or thouands or tens of thousands (depends on the store's customer base size) chance to get screwed if a store "lost" a binder with copies of records inside or a computer database file.
I think it's the same in the west coast for the "free" phone deal.
So, basically if you don't ever plan to cancel the service or return the phone, and don't care about privacy (if you nevere read the FAQ on SSN file) , getting a phone for "free" may be a good deal.
Personally, I won't trade my privacy with "free" phone. Even paying full price plus tax at Staples B&M (never accept coupon code unless you have a REAL coupon on hand) or Circuit City or Best Buy may be better as you can activate the phone with the carrier directly that only the carrier will have your info.
Your Mileage May Vary.
