the only logical reason is that these companies are struggling to sell enough units when the model is old. and they would now have a chance to sell the iPhone 4 at a lower cost which could attract potential android customers.
I think if they really want sales they should not charge the consumer full amount for the handset and still keep the handset locked. Dunno if they are bound by policy from Apple but atleast they can then take part payment then charge the rest in the plan, also sucks is the fact the internet usage charges seem very unfair. But i guess this topic must have been discussed a zillion times. its the same story "the apathy" shown by service providers towards consumers. It will be interesting to see the pricing when they launch 4s
nope. no contracts. you have the option to take their special plans which had discounts applicable on that device. the idea was reverse subsidy. you could save money on your purchase by getting a plan costing 3000 rupees per month for just 1500 bucks. something on that line. you could simply buy the device and use it with any other sim.