The discussion above also confirms this - why everyone repeats this mantra about contracts? You buy contract only once with given provider, once it expires, stay on month-to-month, like in other parts of the world. And get a good unlocked phone.
Right now, Nokia phones on AT&T is the best possible money saver - AT&T does not have database with their IMEI, so they don't force you to pay through the nose for data. If you are individual, unlimited is just 15 bucks. Family? Granted, you already paying for unlimited messaging - then you just add $10 on top for unlimited data. That's it. Here is your $15-$20 monthly discount for unlocked phone.
And if you buy Nokia's latest N8, you get - imagine that! - 9 (nine) band phone, 4 GSM and 5 HSDPA bands, so you are 3G-covered not only in Europe/Asia, but in North America as well.
So, what is not working is the brain of some tech "journalists", unlocked phones are all good, for people, who know how things work.
BASIC is the Computer Science equivalent of `Scientific Creationism'.