How Cell Phone Companies Increase Your Bill

Cell phone bills are pricey, and because it’s a part of the norm, cell phone providers are milking the growing demand. The dependency on cell phones is a major factor why cell phone bills are ascending. However, we do need to know how cell phone companies raise the bill.

Landline Cutting 
Juggling a cell phone bill and a landline bill is too much. The landline bill is expensive, and since it attracts telemarketers more than loved ones, cutting it makes sense to many. Consequently, cell phone providers know about the decrease in landline use and use it to their advantage. Today’s cell phone plans go by a no-contract monthly amount or a cell phone contract where owners pay a set amount as long as the contract is active.

Emerging Fees 
It seems cell phone companies love to penny pinch by tacking on fees. While there’s a price for different phone bill plans, cell phone companies add fees. The problem is cell phone companies repeatedly add fees. Examples include an activation fee, early termination fee, roaming fee, 911 fee, administrative fee, contract extension fee, phone replacement fee, and a fee for talk/text/data overage. As companies add new fees and change others, there’s no recourse to reduce or eliminate fees thanks to the service agreement and terms of use.

Data Limit 
A large reason data use has limitations is people overuse data. Data includes internet use, video game use, music streaming, and video streaming. Companies offered unlimited data use, but after many people consumed data plans as much as text and talk, companies did a 180. Today, providers offer a certain GB of data and charge a fee for overage. An alternative way to cap data use is to reduce the speed.

A second fee accumulating to high phone bills is taxes. Federal, state, county, and city taxes contribute to the bill’s continued rise. Since sales taxes attach to every purchase, a cell phone bill is no exception. The bill adds taxes because it’s mandatory government fees to keep the city, county, state, and federal services and programs going. As taxes rise, so does the bill.

It’s outrageous to assume our ignorance contributes to a costly bill, but it’s possible. People often purchase a phone without thorough research “just to fit in” or because “it’s cheap.” Review the phone bill and analyze phone usage in the past three months. Are you really using MOST minutes, text, and/or data given? Are you using international plans? Do you need phone insurance? Additionally, read the fine print. Is that cheap phone plan cheap for a limited time? Can companies add new fees freely without a limit? Be honest and eliminate items not in use. Switch to a lower-paying plan if necessary.

Luckily, there are smaller, inexpensive alternatives the major brands own along with affordable independent providers out there. Since all providers contain pros and cons, use this information as a research strategy to find a great provider meeting your qualifications.

Written By Ryan Cooper