Re: Another subsidy effect...
people who can't afford the fancy plans with "free" phones get to subsidise those who do
Few people can be bothered to upgrade their phone or switch plans at the end of the contract period*. Even if you do, the total cost is usually more than you would have paid if you'd bought the phone and used a SIM-only contract.
So the subsidy is likely flowing the other way.
*This certainly applies to me and to everybody I know. Phone contracts are like gym membership - you overpay because you don't finish the contract when you could.