What some companies are doing as an incentive to sign on with them is giving you a free gift. For example, the promotion that Telus has right now is that you'll get a free camera if you sign up for a three-year deal. If you cancel within the three years, you'll be subject to the $120 penalty, plus you'll have to pay back $400 for the free camera.
On March 21st, 2007. See this statement in context.