It rather sounds like yo are paying for a package from EE that includes the supply of a phone. My son in law has one of these which icludes an i-phone and unlimited minutes, texts and internet. At the end of the 2yr contract he can either go onto a sim only deal which is much cheaper, and continue to use his old phone, or take out another new contract including a brand new phone. He then sells the old phone on and makes a fair bit of money towards the cost of running his brand new phone. Hence the £50 per month price tag. I went for a more basic smart phone package and pay around £23 a month for mine, without the phone on a sim only deal it would have been around £17.50, and that includes unlimited texts and minutes, and 10gb of internet per month which l never use up as l also have Broadband wi-fi.