Guy at work used to work for the FCC regulating Ma Bell until the break up. He explained that under the law, Ma Bell could realize a fixed profit rate on capital, including home installed handsets. Repair calls were charged against operating expenses, on which profits were subject to FCC review to determine whether or not costs were justified, prudent and necessary. And repair calls resulted in a dissatified customer who would clamor for more laws unfavorable to AT&T. So from the phone company's POV the logistics trade (repair v. initial cost) was a no brainer.
When my father-in-law gave up his house a few years ago we found out he was still renting his phones from AT&T! (About 50¢ a month, not a bad ROI for ~$10.00 twenty+ years ago.) - Over the years we've bought him at least two phones - I called up AT&T to return their equipment. I had to drive 20 miles to an office that did FEDEX, mail drops and had a couple of dumpsters filled with phones. They took back the touch-tone phones, and made me fill out some forms. They weren't interested in the rotary-dial "Black Beauty" sitting on the desk next to me. Makes a real authentic telephone ring, the dial works, has a ringer equivalence of 1.0 and serves as a contingency cudgel.