If I buy an iphone does the carrier start charging me if I dont activate?

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You can get an iPhone form apple for $199 but if I don't want to use it and stick with my current phone do I still end up renewing or starting a contract with them? If I never activate it what happens if I just sell it? Is the next person obligated or am I?
 
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Hi, I understand that the contract starts the moment that you sign up or receive the Sim card.

Whoever entered into the contract is contractually bound to the phone for the duration and also for the payments. I don't think that that you even own the phone while it's under contract because they spread the balance of the retail cost over the contract period.

Basically what you are signing for is an agreement to pay the provider X amount over Y time whilst they in turn agree to provide a mobile service and supply you with a phone at a reduced price until the contract expires. Lose an uninsured phone under contract and you still cough up the full monthly payments.
 

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