Last summer, we were spending $99/month on one smartphone and one dumbphone and had a plan to upgrade to two smartphones while reducing expenses. However, through the winter we had hundreds of dollars of cell phone expenses in each month! This post covers: 1) What the heck happened!? and 2) How did we resolve it? If you’ve ever been frustrated or lied to by your cell carrier, you’ll want to add your story to ours!
I destroyed Kyle’s smartphone at a time for us when it was very inopportune to not have any smartphones (moving i.e. no internet at home). Simultaneously, I had been waiting for my beta wave to come up with a new low-cost carrier. Since Kyle’s phone was more than two years old (and no longer under contract) we decided it was an okay time for him to get a new phone and contract. Since the iPhone 5 was set to be released soon, Kyle decided to wait to see how it was received.
- $63.64 for Kyle’s last Verizon bill
- $35.00 for my normal dumbphone service charge
September and October
The iPhone 5 release was kind of debacle with all the Apple Maps problems, plus Kyle found out he couldn’t use his favorite typing program (Swype) on Apple products. So waiting for the iPhone 5 release became waiting for the Galaxy S3 release, which became waiting for the Windows phone release, which became agonizing over all his options! While this was going on between August and December, we had suspended Kyle’s Verizon account since he no longer had a phone to use but wasn’t totally sure that he would switch to AT&T with his new phone. So Kyle went these months without any phone whatsoever – another story all to its own about lifestyle deflation.
- $35 for each of two normal months for my dumbphone service
When my frustration at not being able to reach Kyle when he was out peaked, he finally searched the house and found an old dumbphone and SIM card and started using that so that I could at least contact him when he was away from his computer. He loaded a small number of minutes onto this phone.
My beta wave finally came up with Republic Wireless so we paid upfront for the phone.
- $10.71 to ATT for some dumbphone minutes
- $35 for my dumphone service
- $277.78 for my new smartphone
Our first misstep occurred with the suspension of Kyle’s Verizon account. He had originally thought it would be suspended for 6 months, but was surprised to receive a bill in the fourth month. It turned out that the suspension was only for 3 months and we didn’t catch it, so we were charged for a month of service we didn’t use at all. No way to reverse it, but we suspended the account again.
After months of deliberation, Kyle finally decided in December to purchase the iPhone 5 through AT&T, since they offered the lowest-cost plan option. He only needed a voice and data plan as he uses Google Voice, so when we went into the store to buy the phone we inquired very specifically about the price we would pay and the discounts we could apply (we get one through our university). Since Kyle had already researched the plan thoroughly, we were surprised to learn that our discount would be applied to both the voice and data components of the plan, which was different than what he had found. We also signed up for the insurance through ATT, which was supposed to be free for the first month.
Perhaps we shouldn’t have been, but we were shocked to find mistakes in our first bill – we were charged for the insurance and the monthly fee was much higher than what we had gone over with the salesperson. Kyle felt as though he had been deliberately lied to. So we went back into the store and talked with another person, who was able to reverse the insurance charge but said he couldn’t do anything about the inadequate discount. We were very disappointed with the customer service at that time and inquired about the return policy on the phone as we were about to leave for our winter break.
This was also the first month of my smartphone use, and I kept my dumphone around for a while to make sure Sprint had good coverage and all of that, so I paid for both services in this month.
- $66.32 for the month of Verizon service we didn’t use
- $213.99 for Kyle’s new iPhone
- $122.75 to ATT to for the new plan’s charges and a bit over a month of service
- $35 for my dumbphone service
- $22.28 for my smartphone service
Upon returning to Durham, Kyle figured out what had happened with the misapplied discounts – the original salesperson had given us the general “student” discount instead of the “staff” discount negotiated by our university, which was higher. He corrected that mistake online. However, we also discovered by comparing Kyle’s old Verizon bill with his new ATT bill that ATT was charging us several extra dollars in taxes over what Verizon had, which flipped the cost analysis to favor going with Verizon with exactly the plan he had had before the upgrade, only without unlimited data.
We went back to the ATT store to return the phone even though we had gotten all the mistakes worked out because of this issue of the taxes. At first we weren’t sure why we would have been charged different taxes because the plans were so close in price, but then we thought that ATT just passes on more taxes that they are charged directly to the consumers while Verizon rolls some of their expenses into their overall plan costs. We probably couldn’t have found this difference through online research. Anyway, we went to return the phone because we were so disappointed in the customer service – if not for that we would have stayed even with the slightly more expensive plan. Factoring in the restocking and activation fees, we figured it would be a few months before we would break even again.
Of course we had excellent customer service during that visit. The salesperson even told us that the activation fee would be waived, so we would only be out the restocking fee. He seemed very disappointed in his colleagues and Kyle became worried that he would be reprimanded after the manager was called over to talk with us.
That same night we headed over to the Verizon store to purchase the iPhone 5 through them. (Doesn’t that seem wasteful? I’m sure ATT can’t resell the phone we returned as new even though it functioned perfectly well. If only the two companies used the same hardware, we could have kept the phone itself.) It was a very simple transaction – just reactivating the account, buying the phone, and verifying that the bill would stay the same as it was last summer.
- $178.99 refund from ATT for the old new phone
- $246.08 to Verizon for the new phone
- $22.18 for my smartphone service
We received our first bill from Verizon and it was more than we expected and very hard to decipher. We think it was higher because it was for slightly more than one month of service.
- $77.83 to Verizon for Kyle’s service
- $22.18 for my smartphone service
This is a completely normal month of charges at last! Kyle’s cell bill isn’t back to where it was last summer – it’s about $6 more. We were assured – multiple times by multiple people – that the bill would be exactly the same as it was before we suspended it and the taxes wouldn’t be reassessed or anything. This bump actually made the ATT plan the better deal, as it turns out.
We also finally inquired about the activation fee refund ATT said we would get but never did. The employee who told us we could get it basically did not stand behind that statement and said we would have to “dispute” it with the company, which we don’t want to do because we thought we should be paying it in the first place and only got our hopes up because of what he told us!
We are too exhausted by this process to fight any more! We are just accepting that Kyle’s bill has gone up slightly and we’ve had to eat all the fees associated with changing carriers multiple times.
This month I also dropped my smartphone on the ground and cracked the screen. It still works but we do need to replace it, which we think we can do for about $25. That won’t happen until we have some time in April, though!
- $22.18 for my smartphone service
- $69.85 to Verizon for Kyle’s service
In conclusion, our cell regular monthly cell phone bills went from $98.64 in August to $92.03 in March (with an upgrade in service), but in between we spent nearly $700 out of pocket on hardware and extra charges! That really sounds like a terrible deal, although I guess it was slightly mitigated by not paying for a phone for Kyle for several months. This money came out of our Electronics savings account until it was drained and then from our general savings (which we are now repaying monthly). We are fed up with both ATT and Verizon lying to/misleading us. So far Republic Wireless is working out fine, but we haven’t had any interactions with their customer service. I’m not sure what we’ll do when Kyle’s contract is up in two years – maybe by then the alternate carriers on Sprint will have convinced us that we can trust both our phones to them!
Do you have any cell phone salesperson horror stories? Is your cell bill what you expected it to be when you signed up? Do you stick with one carrier or go with the best deal and why?