A phone plan ad says: “Unlimited data. 5G. Free streaming. $45 a month.”
Sounds great. Now read the asterisks.
“Unlimited” means unlimited at reduced speed after 50GB. Most providers cap usable 5G at 20 to 50GB before slowing you down. The word “unlimited” is technically true. Functionally, it’s not.
“5G” means 5G-capable, not 5G everywhere. Actual 5G coverage in most regions is under 30% of the country.
“Free streaming” usually means streaming-doesn’t-count-against-data but only for specific services in a specific quality. Netflix and Spotify at lower resolution. Not YouTube. Not Disney+. Not what you actually stream.
“$45 a month” is usually a promotional price for 6 to 12 months. After that, it auto-adjusts to standard, which is typically $60 to $75 a month. The promotional price is in large font. The standard price is in fine print, often on a separate page.
Here’s what matters instead. The total cost over the contract (24 or 36 months). The actual data cap before throttling. The out-of-coverage fees. The early exit fees if you want to leave.
Rule
In phone plans, the headline number is a teaser. The real number is the cost over the full contract, including all fees and post-promo pricing.
Action for this week
Pull your current phone bill. Calculate the actual monthly cost including all fees. Compare to the advertised price you signed up for. That’s your real plan.
Next week
Why most people pick stocks instead of index funds, and why they shouldn’t.
Know someone shopping for a phone plan? Forward this.
P.S. The best phone plan is the one you’d still be on if the promo ended tomorrow. Because it always does.