The providers have reasons to charge more here, but they take that to the absolute extreme. Buy a pay as you go phone? You could buy one every month, and keep it stocked with minutes for what it costs to run an iPhone!
Understanding reasons is one thing, but paying over $100 every month for phone service is another - reason or not, that's a pretty crazy thing to do as a consumer. Maybe the dealerships should have helipads on the roofs so their target audience can drop in between galas...