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The whole 'buy a subsidized phone on a fixed term contract' thing for mobiles is very US-centric.
I think the 'own the phone beforehand' and 'get service from whoever' model is much more prevalent in Europe, for example. I have never bought a phone from a service provider (and I think I am on my 6th mobile now). In some European jurisdictions it is even illegal for a mobile to be locked by a carrier.
Of course, in most places you can buy the phone on a fixed contract if you can't afford to buy it outright.
In my case, I buy the devices I want and then get SIM cards from my employer and use those.
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