Cell phone overage fees going away

Clark Howard is a nationally syndicated consumer advice expert

The prevailing business model from the major cell phone companies has been to lure you into a bear trap and fee you to death. But that’s changing quickly. And pesky overage fees are the next to bite the dust.

T Mobile CEO John Legere is no stranger to causing commotion, and he’s doing just that at the expensive of the other major US cell phone carriers. He announced on his blog last Wednesday that T Mobile is doing away with all of their overage fees. And he’s also asked Verizon, AT&T, and Sprint to join him. That request was mostly met with a curt, “no comment.”

These fees cost consumers an estimated 1 billion dollars a year according to T Mobile! We’ve been hearing complaints from listeners for years on surprise fees that can add up to incredible dollar amounts. Some of those have fees have even been in the thousands of dollars. To see those overage fees gone for good would be a boon for consumers and would create more transparency as well.

The wireless revolution is in full swing at this point. From the small discounters like Freedom Pop and Republic Wireless to the major disruptor T Mobile, the landscape of mobile is already vastly different than it was just a few years ago. But did you know that you can still overpay? If you sit on your hands and do nothing it’ll cost you big-time. The real savings come when you switch to one of the deal-oriented carriers and say adios to the behemoth companies.

Also, Republic Wireless is launching their new, far cheaper phone. They now add an inexpensive handset to their already impressive plan offerings which start at just $5 a month! So don't just sit there and take what the overpriced big guys offer you. And if you're in a contract, there's a solution to that as well.

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About the Author

Joel Larsgaard