this is how i was going to reply
How do you figure?
Customer buys a subsidized phone. They make the money back by charging more per month. They make that back within a year while having the customer on contract for 2 years. If the customer cancels prior to contract expiration, customer pays an early termination fee.
They can't lose.
You're assuming that if the customer isn't under contract, they are going to leave Verizon. This simply isn't the case. A lot of people ( A LOT ) are on Verizon simply due to vastly superior coverage. It's certainly not because they have the most enticing phones, the cheapest bill, the fastest internet (yet) or the best customer service. In fact, they are probably one of the worst in all of those departments. T-Mobile is much cheaper (more Android phones) faster internet and better customer service. Sprint is better customer service and much cheaper. ATT has the Iphone and comparable coverage. The ONLY thing Verizon has over everyone else is better coverage. Tell me that if T-Mobile didn't have as large a footprint on Verizon they wouldn't have 70mil+ customers.
So at the end of the day, people are not only willing to endure shitty customer service, expensive phone bill and a tyrant for a carrier... but they are also going to stay even if they are out of contract, because they need their damn phone to work in their house.
And guess what, Verizon would LOVE it if they decided to get an unlocked phone from Ebay so they don't have to subsidize it. The customer is most likely going to stay with Verizon anyway and they know this.