nzbnw:Just checked Telecom's prices and saw a Nokia 2118 for $ 99. A comparable unsubsidized GSM handset like the Nokia 1110i costs $ 60 here in Europe.
Even prepaid and open term contracts....
A Treo 700 is sold for $ 999 at Telecom, whereas a 3G-enabled Treo 750 costs $ 915 in Europe.
So I can't see any subsidies in Telecom's prices.