Reasons Why Two Year Cell Phone Plans Are Not a Good Idea
Early termination charges
If you find a better plan you can't just leave without paying a penalty. Cell phone carriers want to lock you into a 2 year plan otherwise you would be changing plans all the time like we did for long distance carriers. Ads are meant to lure you away and offer such a good plan you don't mind paying a penalty. The carriers win and you lose. Plus the cost of new phones and transferring your number or having to get a new one. Guess what too if you had a shared plan you get charge early termination for each line.
Phone upgrade hassles
You settle on a phone and low and behold a new phone comes out that has some features you want. You can't just upgrade without buying the phone. You get a free upgrade after the 2 years but you want the phone now. With a new phone they will transfer your number okay but than you are out the money you spent for the other phone unless you got it free. If you change carriers you have to buy or get a new phone anyway.
Paying for minutes you never use
Not all carriers have roll-over minutes so you might end up paying for minutes you never use. The same goes for text and other features that you don't get your money's worth out of. Carriers are getting rich off of the consumer in offering services so we can always be just one phone call away.
Not all free phones are good
Not all the free phones they offer are good. The early termination is there to mostly cover the cost of the free phone if you cancel early. Not all the free phones are worth the fees you have to pay if you decide to go to another carrier. Some phones break or come defective out of the box. You do have 15 days from the time you receive your phone to return it as long as you don't activate it. If you waiver the service plan your stuck if the phone breaks or you lose it. Some free phones just aren't very good and have very short battery life. Carriers get a huge discount buying these phones from the manufacturer. However, if it breaks you would pay full retail price to get a new one. Once again the you would be the loser.
Published by Timothy Scheiman
I am 59 years old and I have been buiding and fixing computers for many years. Last year I started writing at AC. I found it fun and profitable. It also gave me a chance to share what I know. View profile
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5 Comments
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Each year phones gets better more enhanced and more features. Just get a 1 year contract and upgrade your phone from you provider it is cheaper that way. Try this Cellphone Plans
5 Stars!
Great article, Timothy. I used to peddle cell phones for a living, and even though you get a cheaper price on the phone for signing up for two years, it's really not worth it. Go for a shorter contract whenever possible. A lot can happen in two years, and those early termination charges are awful.
Excellent advice! We have a family plan with AT&T which is maxed out with five phones (all on two year contracts which expire at various times). We have had the plan for years (with Cingular). I need to look into some other options. Thanks for sharing this! :)