Fee-free way to ditch your cell phone contract
I hate cellphones. The call quality is horrible, calls get dropped too often, the price per minute is comparatively sky-high, the terms are lopsided in favor of the carriers, and they seem to encourage horrendous manners from many users.
One of the universal terms that are lopsided against the consumer is the handset charge vs. contract commitment. Carriers will not allow phones from competing companies to be used on their network (an old Ma Bell trick from the 1930’s), so you are stuck getting your handset from the company.
If your handset gets lost or breaks down (as many do since they are small electronics prone to much abuse), you are faced with paying full retail price for a new handset, extending your contract another year or two for a handset price discount, or paying the $200-250 fee to break your contract early.
Before I forget, I wanted to say if you are in the final months of your contract, you only have to pay a prorated fee to break the contract. Don’t get suckered into paying the full amount three months before the end.
Suppose you are just tired of the company? Their coverage may be lousy, their features may be skimpy, their plans may be overpriced, they may not offer the handset you want, their phone-in systems may be mind-boggling, and/or their customer service reps may be rude.
For whatever reason, if you have at least six months in your contract and want to break it without paying the deactivation fee, you can! All cellphone carriers stipulate in their contracts that if you make more than 50% of your calls off the carrier’s network, they have the right to cancel your contract (ironically, without paying you a deactivation fee).
It can be hard to tell if you’re using your carriers tower or another, so a good way is to make sure you have free roaming and then place more than 50% of your calls while roaming. It can take about three months of doing this, but they will cancel you because they are not making enough money to justify keeping you.
I like this method because you don’t have to call and yell or lie and stoop to their level. You still get a few months service out of the deal, and avoid paying a ridiculous deactivation fee.
If your handset is unusable (lost, stolen, damaged), you can still do this by purchasing a cheap used handset from classified ads or eBay, and having your carrier make that your default handset. Just make sure it has your carrier’s logo on it, and verify with the carrier that the handset’s mobile ID number does not have any final bills attached to it.
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Comments
My wife and I have used Tmobile’s service, with pre-paid minutes, for more than a year now. We’re quite happy. Our service is great, our calls never drop. So far this year, we’ve spent only $25 on the phone, adding minutes — that got us about 120 minutes; we don’t use it heavily. I’m amazed at these people who drop $200, $300 a month on their cell phone service. Of course, they’re on the phone constantly. That’s cell phone obesity, that’s what it is.
And by the way, there’s no “Ma Bell” trick from the 1930s that makes it impossible to carry a phone from one carrier to another. It has to do with the software programmed into the phones. Carriers use different network technology to transmit their calls, and those technologies aren’t compatible as far as phone programming goes; think of it as the VHS v. Betamax, but without a clear winner. IF, however, you buy a phone with a SIM card — like the ones Tmobile uses — you have a much better chance of using that phone with another carrier. Do not ask me for the technical specs on this, as I have just a basic understanding of the technology.
How is Tmobile’s coverage through SE Idaho? That is important, because I know Qwest loses signal throughout the Rigby area.
Also, how much did you have to pay for your handset since it was not subsidized by a contract? I imagine it’s a basic phone since you describe using it occassionally. Nothing wrong with a basic phone, just wondering what you had to pay for it?
I guess what I meant by the “Ma Bell” trick was how they used to hardwire the lines into the phones, which on further reflection makes me wonder when they finally released the invention of the modular phone plug? I read a history of AT&T that mentioned it took them 30 years to decide to release a color phone. I wonder how long they sat on the modular plug?
I have heard they would not allow any other company’s phone set to be used on their network, however. They claimed potential incompatibility with their network, but it was really a ruse to keep their monopoly.
I understand it’s the software in cellphones that keeps us from using the same handset between carriers. Your example of VHS v. Betamax is perfectly analagous to the competing GSM v. CDMA techologies.
However, inside the cellphones there is a lock code that is needed to reprogram the phone to be used under a different number or network. If you ever have to change your cellphone number they walk you through it and give you the lock code in the call.
It doesn’t matter if you are using the a handset on the same technology and even with the same make and model number; if the carrier’s logo isn’t on it, they won’t carry it in their database and they won’t let you use it on their network. The SIM card (from what I understand) is used for the data like your phone directory, not for the lock code.
Perhaps I’m wrong?
Can anyone name a time they could switch between two different cellphone companies and use the same handset (not a merger of companies)? If so, please identify the two companies, the technology (GSM or CDMA) and the phone make/model.
Tmobile’s coverage is excellent. I’ve used the phone in the Teton Valley, Yellowstone NP, out in the desert at the INL, and on a recent road trip from Sugar City to Los Angeles. Never met a coverage hole.
The handset we have is very basic, and cost us $80. Since we’ve had the phone for about two years, we’ve spent probably $180 on the phone and minutes, which is a lot less than the $60 to $80 I hear many people talking about per month for an average cell phone bill. What I like the best about Tmobile is that if we run into a period where we don’t use it, we’re not charged just for the privilege of having the phone. Currently, the minutes we put onto the phone are good for a year.
The SIM card contains everything you need if you want to move your service from one SIM-card-friendly carrier to another.
I think I recognize the subtle point we agree on here.
I can agree the SIM card information can be taken between carriers, but I am positive that you cannot still use the same phone with another carrier.
So you may switch to another SIM-card-friendly carrier, but you would still have to buy one of the new carrier’s phones to use your SIM card in from your old phone. Hence you’re still forced to buy a new phone.
Joe, you’re right. My focus on the SIM card in switching carriers is incorrect. I did a little research, however, and found that by “unlocking†your cell phone, you will be able (theoretically) to use it with another provider, providing they use the same network technology. I’ve never done this myself, but this site (http://www.unlockcellphone.com/about.html) offers a little tutorial. On their FAQ, they offer a chart showing what cell companies operate on compatible network technologies. They also offer to do the unlocking for a fee. It would be interesting to hear from someone who has done this. But since this is off the Internet, perhaps it’s a load of hooey.
There we go, devil is in the details.
That’s an interesting site, and I like what they’re doing. I wonder what support or pushback they get from the cellphone carriers, though?
This is how I understand the process and why I don’t think you can take a handset between carriers even if you ‘unlock it’:
You call any new carrier, say you want a new account and you want to provide the handset. They ask for the handset make/model/serial number for the handset to first ensure they don’t have any old final bills outstanding tied to that handset.
I think by doing this database check for final bills, they are also ensuring it is in their database period, and if they don’t find it in their db they’ll say sorry, you cannot use that phone on our network.
If anyone has been able to do this I also would really like to hear how they did it. I think the telecom regulations need to be changed to allow customers to take their handsets between companies if the same GSM or CDMA technology is used.
We can port our numbers but not reuse our handsets, isn’t that crazy?
Absolutely crazy. I used to work for Qwest customer service, and found that cell customers were most frustrated with contracts and the inability to take their phones from one carrier to another. Having one network technology set as a standard would help, but convincing government and industry to agree on one standard, after who knows how much money is invested in incompatible standards might be as easy as getting Iran and Israel to kiss on the lips.
I had a friend that successfully had a phone unlocked. It was an old AT&T (GSM) handset but it was able to be cloned into Cingular’s new (GSM) network (something a rep. said could not be done). I believe this is also true for T-Mobile’s phones (again, GSM/SIM card phones).
As for Verizon, I hear it is a bit harder because they use CDMA technology, which is locked inside the phone, not tied to a chip and unlocking the programming of a handset.
AFAIK–
Two major US technologies: GSM and CDMA. T-Mobile/Cingular are GSM (SIM cards); Verizon/Sprint aren’t.
As a T-Mobile customer, I can e-mail customer support and ask for the code (specific to each phone’s IMEI #–similar to a Serial #) to unlock the phone. “I’m traveling internationally and want to be able to use an international pre-paid SIM card.” (Cheaper than international roaming). They say sure. You enter code provided, phone is now unlocked.
I start up a Cingular account, wanting to use this phone. I have to get a NEW SIM Card from Cingular. The SIM cards are not just memory for phonebook/photo storage; they are there to tie your number/account/service together. Same technology carriers, same phone, different SIM card.
I’ve tried most major cell companies over the years and found I receive the best service with Cingular. I’ve been with them now for almost 9 years and love their service. Granted their customer service is sometimes a little frustrating, but as far as the service itself, it’s great. I never getted dropped calls, and the range is excellent even in the mountains.
When I moved up from Florida last year, I didn’t bother to change my number for the first couple of months, since they don’t charge you for roaming. The only problem was, once I WAS ready to switch I ended up having to get a Boise number since Cingular doesn’t have local numbers as of yet. They are working on that though and I was told they’d have local numbers set up for SE Idaho by this summer. It wasn’t an issue since long distance is free so it didn’t bother me. I great reception and no dropped calls & that’s the most important thing to me..
My girlfriend had Verizon which absolutely sucked. She was constantly getting her calls dropped, static on the lines, and no signal in the mountains. I convinced her to switch and get on a family plan with me and she’s been happy ever since.
I haven’t had a land line for about 13 years now. There’s no sense in paying for two phone bills, especially when pretty much every cell company has provided free long distance for years.
i switched from verizon to uscellular and kept the same handset. I used a p2p network to get some groovy software that actually re-imaged my Motorola v3m. took about 2 hours and was a pain in the rump but it works great. and now all the features of the phone that verizon locks are usable (mp3 player, custom ringers)
It seems like ever since I wrote this, I’ve heard more and more about SIM cards and unlocking phones, so my topic was just at the end of an era it seems.
I hear some carriers still hassle people about it, but you should be able to do more carrier swapping and features-loading nowadays with a single phone.
I have always had Verizon Joe, and bought one of their Pocket PC phones about 8 months ago this was their top of the line phone and due to a job change they are getting me a T-Mobile blackberry that came with a sim card. This is the first I have seen of them so Joe if your at the end of an era then i’m prehistoric i guess.
First off it depends on who you have your service with. Some companies are more lenient than others when it comes to “replacements”. Tomorrow, call your service up and tell them you’d like to add the insurance onto your phone, but don’t tell them it’s broken yet. (most of us can go without our cell phones for a few weeks, so this shouldn’t be a major problem) Than after a 2-3 weeks, call them up and tell them your phone is broken and you’d like a replacement. They’ll ask you what happened to it and you’ll have to explain what happened and what part of the phone is damaged. Just tell them the truth and explain that you need your phone replaced asap as it’s your home phone as well. (after all this is what the insurance is for. most companies don’t limit you as to how or why your phone broke) They’ll ship it out next day air for an extra 15 dollar fee, which they’ll tack on to your next bill. You’ll get your replacement Razr with an return authorization number and a prepaid envelope for you to return your broken phone. Make sure to remove the battery and your sim card because you’ll need those for your replacement phone. And viola…no problemo. I have a razor as well and after about 10 months the screen went blank on me. I have AT&T and this is how I got mine replaced. Granted I’ve been with Cingular/AT&T for the past 10 years so I don’t know if that helped matters or not, being a loyal customer and all, but it couldn’t hurt to try. All they can do is say “no”. Then make sure you get a nice case so that doesn’t happen again. Razrs are kinda fragile that way….at least everyone I know who’s had one has had a problem with them breaking when they’ve been dropped and didn’t have a case for it. Also, try to get one that envelopes the whole phone, and not just a “case” where you have to take your phone out each time to make a call. Body Glove brand makes a real nice case for the Razr and I’ve dropped mine a more than a few times and it’s always protected it really well. I haven’t come across a different brand case that’s made specifically for the Razr that fits as well. It covers the whole phone and may not look as stylish as not having one, as Razrs look nice, but it will definetly keep your phone well protected from scratches and any other damage you may get from dropping it. They’re available at WalMart for around 10-15 bucks.
Good luck and come back and let us know if it worked for you.
Do you really think the phone companies are losing money?? Give me a break! I guess that’s why they continue to charge us 200 bucks a pop to break a cell phone contract and by also preventing us from using a cell phone purchased through AT&T with another company like Sprint or TMobil.
Wake up man! If anybody is getting robbed here, it’s the consumer from the greedy cell companies.
i’m quite calm but thanks for asking. 
I have to have a cell phone for business purposes, so it’s easier to keep a cell phone contract than pay for both a cell and land line.
I say morals schmorals! You think the cell companies think about “morals” when they want to nickel and dime you for everything or when they charge you 35 bucks to tap a few keystrokes on their keyboard to turn your service back on if you’re late paying your bill. No, they have no morals. So I have no morals by taking advantage of them whenever and whereever possible. 3rd world countries have better cell service and more features with their service than we do, yet we pay in many cases 3 times as much.
It’s got nothing to do with “morals”….but thats just my opinion.
This new policy all cellular providers are using requiring 2 year contracts makes me even more irritated at the whole mess. I’m seriously thinking of telling them to get screwed and go with one of those Walmart specials that use the phone cards with no contract at all. I hate being locked in to a company for 2 years not knowing how bad their customer service is going to be (like Edge) or especially after being repeatedly lied to by sales reps (US Cellular). It takes at least two or three months to get a handle on how you’re going to like a new service but they only allow 30 days to change you mind and back out of the contract.
Here’s an idea - If enough “potential customers” were to continually call these providers and refuse to sign the long contracts maybe they will eventually go back to a year. It doesn’t matter if you actually plan on signing, just call or talk to them in person then walk away when they mention a 2 year contract. I always do this to those kiosk guys who insist on annoying me with a pitch as I walk by.
Excellent point cafe!
I recently had an issue with AT&T. A little over a year ago I upgraded to a “family plan”, which they had no problems doing, but also started my 2 year contract all over again. I have been with Cingular/AT&T for close to 10 years so I was a long time customer. A few months ago I no longer needed the family plan and tried to change my service to a more reasonably priced service with less minutes. This time they wouldn’t let me do it, saying I needed wait until my contract was up. It just didn’t make any sense because they had no problem changing my service plan in the middle of my last contract. But I suppose since I was paying for a more expensive plan it wasn’t an issue.
Since then I’ve cancelled my contract with AT&T. (of course they charged me 200+ dollars to do so) but I’ll pay them 20 bucks a month until its paid off and then I went to WalMart and purchased a prepaid Virgin Mobile phone with no contract and am only paying 20 bucks a month for the same services I was paying 99 bucks a month from AT&T.
Cell companies are definately a rip off! I agree with Cafe….if more people would refuse to sign these ridiculous 2 year contracts, perhaps they would back them back down to a year or less. I just couldn’t beleive all the time I spent with Cingular/AT&T and they wouldn’t work with me.
Good for you CR67! Too bad you had to pay the early cancellation penalty but sometimes sticking up for your principles is more important. These phone companies get away with their shenanigans because people put up with it and still do business with them. I won’t sign a contract with a cell phone provider because there is really nothing in it for me. I presently have a cell phone provided by my employer but if I were to pay for it myself I would also use prepaid phones with no contract.
As I said in #19, and Guest #20 took it farther, theft is theft and there probably isn’t a company out there that we couldn’t find some way to justify our theivery, because:
1. They’re making money, and
2. They have outrageous business practices.
I can’t agree with this post or the “stealing is ok if it makes you feel better and besides, they don’t miss it and more than that, they’re jerks anyway…” kind of mentality.
But that’s just me.
If you don’t like how they do business, do business elsewhere. Write letters, campaigns, petitions, etc. Get your congress reps to look into illegal business practices, go to the BBB.
But don’t steal from them and say it’s justified, please.
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So far, I’ve avoided getting a cell phone, so I can’t comment on your experience. But I can say that your article has reinforced my decision not to get one with a contract.
Does anyone have any experience with pre-paid cell phones?