Tuesday, March 04, 2008

Is a Free Cell Phone really Free ?

All over the web you can see Free Cell Phone offers - free RAZR, Free Blackberry, Free Chocolate from Verizon Wireless and so on. How can the wireless providers give you a free phone? The answer is service contracts. Cellphones are NEVER free - in fact they come with a fairly large monthly expense for the rate plan you choose. A free cellphone deal is really more of an exchange of a "free" phone upfront for you the customer agreeing to a cellphone service contract for your rate plan for usually 2 years at a cost of at least $29.99 per month but almost always more than that. This arrangement has its roots going back to the early days in the wireless industry and has been both a major driver in growth and adoption of mobile phone use in the United States. Interestingly, this arrangement or trade has been going on for so long that almost all wireless phone users think that a cellphone is free and do not want to pay for a new one or certainly do not want to pay the real cost of a new cell phone - the result is a new trade for another cellular service contract and the Free Cell Phone circle of life continues. But, it is not and has never been FREE - hehe!

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