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Free Cell Phones - Are They Really Free?

By Conrad Melancon

Are you one of the nearly 200 million Americans who owns or uses a cell phone? If so, did you pay for your cell phone or did you get it for “free” when you signed up for a service plan. Have you ever wondered how much your free cell phone really cost?

Look in any newspaper or drive down any street and you’re bound to read an ad or see a sign that entices even the most skeptical consumer - “Free Cell Phones”. Do you believe in the tooth fairy, a free lunch or the boogeyman? If so, read no further, I would hate to shatter the dream world you call home. These signs might just draw you in so you can be one of the lucky people to receive that “free” cell phone.

You’re in the store shopping for a new cell phone and have numerous options to choose from – which one do you pick - the “free” cell phone or the one that may have more features but costs money today. You may pick the “free” cell phone, but make sure you pay close attention to the fine print.

The truth of the matter is that cell phones cost money to manufacture, distribute and market. A “free” cell phone is one that comes to the carrier or retailer with a low enough cost that they can underwrite it by signing you up on a service plan which carries a preset monthly minimum charge. Additionally, retailers receive a sales commission from the service provider when they sign you up for service. This means that in many cases independent retailers can make you an even better deal than a carrier owned store on your cell phone depending on the plan and length of time you sign up for.

Also keep in mind that just because one model of cell phone costs more than another, that doesn’t mean it will perform any better. When you go shopping it’s most important to keep in mind several basic things.

  • Which type of cell phone do you like the best…flip, candy bar, or another shape?
  • What features will you really use and which ones are just nice to have?
  • What type of service plan are you being required to sign? In many instances the price of the cell phone may be determined by the length of the contract you sign as well as the monthly cost.
  • Will you keep the cell phone for the length of the contract you sign?

 

Remember, there is no such thing as the tooth fairy, a free lunch, the boogeyman or a “free” cell phone. You’ll either pay for the cell phone when you sign up for service, or later through your monthly service fees. When you shop, determine your needs, gather information about the type of cell phone.

 

Conrad Melancon is the Vice-President of Sales & Marketing for RMS Communications Group, Inc. He joined the company in November of 2004 as the Director of Business Development and assumed his current position in July of this year.
RMS Communications Group, Inc.

 
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