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Why line acces fee when "out of contract"?

Why am I still charged for line access fee when the device is "out of contract"? It's a subsidized price for a free modem, but then once paid off, still paying for it. I asked in a chat about the smartphone discount when out of contract and the Verizon rep said they loose money on the smartphones so they have to make it up.... very nice.

Re: Why line acces fee when "out of contract"?
Sr. Leader

There is no reduction for devices other than phones. One of the reasons is the amount subsidized is not as high for non-smartphone devices. Still, even with smartphones, you get less off contract price depending on how much data you have. None of it makes full sense, but that is the way it is for now.

Smartphones on contract $40, off contract $25 or $15

Basic phones on contract $30, off contract $30

tablets on contract $10, off contract $10

Hotspots/jetpacks/mifi $20 on contract, $20 off contract.