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Me too. Though I can think of two explanations.
1. The iPhone was/is only on AT&T, so people had to have that service or be out of contract with their wireless provider to switch without paying a penalty.
2. With the WiFi only model, there's no need (and no requirement) for a data contract which isn't needed for people like me who don't travel much and spend 95%+ of their time around WiFi hot spots.
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