Study estimates over 70 million Americans have learned the hard way that "free" and "on us" phones are not exactly free

What's more, those who use about 5 GB of data per month are en masse on unlimited plans.

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Collage of the logos of AT&T, Verizon and T-Mobile.
Every time a new flagship appears on the shelves, big carriers like Verizon, AT&T and T-Mobile rush promos like "Get it free, on us!" – then, there's the fine print. The phone's actual cost is spread across monthly bill credits that only apply if you stay on a qualifying plan (not a cheap one) for the full term. These offers are designed to lock customers into long-term contracts.

Now, there's a study that estimates about 73 million Americans have fallen for the idea of "free" and "on us" carrier phones without actually understanding the fine print.

The nationwide study



A national poll conducted by The Harris Poll for Consumer Cellular suggests that many Americans are spending more than they realize on their mobile service. The research found that a large share of people over 50 pay for unlimited data they rarely use, effectively helping to cover the costs of heavier users on the same networks.

Consumer Cellular's own usage records show that customers in this age group average just over 5 GB of data each month – far below the limits that justify expensive unlimited plans. The study also uncovered that about one in four adults have signed up for a “free” or “on us” phone offer without realizing the fine print often ties them to multi-year plans or higher monthly rates, canceling out any apparent savings.



Do you believe the "free" and "on us" promos by Big Wireless?



What the numbers say


Key insights from the study reveal a widespread lack of awareness about mobile costs and plan value among US consumers.

More than a quarter (27%) of adults have accepted a "free" or "on us" phone deal without realizing the terms or obligations attached. Nine in ten (90%) mobile users believe most people misunderstand the real cost or fine print behind such promotions. Among those aged 50 and older, nearly eight in ten (79%) either have unlimited plans or use far less data than their plans provide, suggesting they routinely pay for unused data.

The problem is even more pronounced among customers of major carriers: over eight in ten in this age group either have unlimited plans or underuse their data, more than half are unsure of their monthly data usage, and another half never compare plans for better value. Overall, 43% of mobile consumers never shop for a better deal, including more than half of those over 50.

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How to save billions of dollars?


Many consumers end up overpaying for wireless service because they rarely review their data usage or compare plans. That's why it's a good idea to audit your data use, to calculate the real cost of phone deals, and to review plans annually to find smarter, more cost-effective options.

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