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How about the government subsidizes the cost of the phone for needy customers rather than the reseller.
Are there any other industries where a product or service is subsidized by the reseller? What if, like dental insurance, there were a cell phone insurance company.
I mean, locking phones is stupid to begin with but if it's for a small segment of people who want $0 / cheap AF phones, maybe there's other options. I'm on ATT's site and see a Moto Razr with a retail price of $1k and a payment plan of $6/month for 36 months ($216). The Ts & Cs to get there are lengthy and questionable. The whole industry needs more regulation for the protection of consumers - especially given how critical having a cell phone is in the 21st century.
I believe we already have this to some extent in the States via the SafeLink programs.
At the federal level: https://www.fcc.gov/general/lifeline-program-low-income-consumers
How about the telecoms STFU and let people use loans/credit cards if they need them. Using a phone plan to buy a phone costs dramatically more than just financing one through normal means and US phone plans are insanely expensive. I'm in Spain right now, my phone plan is 5€/mo and it has plenty of data.