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From: "Rod Speed" <rod.speed.aaa@gmail.com>
Newsgroups: misc.phone.mobile.iphone,comp.mobile.ipad,comp.sys.mac.system
Subject: Re: Hey, Nospam
Date: Fri, 5 Jun 2015 07:24:09 +1000
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nospam <nospam@nospam.invalid> wrote 
> Tim Streater <timstreater@greenbee.net> wrote
 
>>>> There's also subsidized without a contract, which I'm on.

>>> what's to stop you from defaulting if there is no contract?
 
>> It's PAYG, presumably.
 
> paygo is not subsidized.

It can be when the phone is locked to that carrier. 

In fact normally is with most systems.