Verizon CEO Dan Schulman has a message for anyone waiting on a free phone with the next big launch.

“You’re not going to see phones on us even with new launches. That’s just not going to happen because it doesn’t need to happen,” Schulman said Sept. 9 at the Goldman Sachs Communacopia + Technology Conference.

He framed it as a break with the past. “Verizon and actually the mobile industry had a belief system that the only way you could attract customers or retain customers were by giving away free phones,” Schulman said.

Losing the free phone sounds like bad news. For many households, it could be a nudge toward a cheaper setup, because the free phone was never quite free.

What ‘free’ really costs

Carrier phone deals usually arrive as bill credits, not a discount at the register. When Verizon launched the iPhone 17e in March, it offered two “on us” deals, each with a 36-month 0% APR installment agreement and up to $600 in credits applied over that term. One required a new line on a plan costing at least $65 a month with Auto Pay. The other required a trade-in and a plan costing at least $80 a month with Auto Pay.

Those credits come with strings. Verizon’s deals FAQs say the credits stop if you pay off the phone early, cancel the line, or switch to a plan that isn’t eligible for the deal, even if you haven’t received the full credit yet.

The phone also stays tied to Verizon. Under the company’s unlocking policy, postpaid phones are unlocked automatically when bought at full retail price or when the financing balance is paid in full.

Put together, a “free” phone can keep you on a pricier plan for three years. Wireless customers who pay only for phone service, without a bundle, average $102 a month, according to J.D. Power’s 2026 Wireless Carrier Satisfaction Study.

1. Price the plan and the phone separately

Before you take any deal, add up what you would pay over the full 36 months. A rough example: The $65 minimum plan on the new-line iPhone 17e offer comes to $2,340 over three years before taxes and fees, with the phone covered only if you qualify for the full credits and keep the line for the full term.

Now compare that with buying the same phone outright. The iPhone 17e starts at $599. If a cheaper plan saves you even $30 a month, that is $1,080 over three years, well more than the phone’s price.

2. Keep the phone you already have

The cheapest phone is usually the one in your pocket. If it still gets security updates and holds a charge, a new battery may buy you another year or two for far less than a new device.

If you do upgrade, sell or trade in the old phone for cash or credit you can use anywhere. Wipe it properly first, and follow these steps before you give up an old smartphone to keep your accounts safe.

3. Buy unlocked and stay flexible

An unlocked phone, bought new or certified refurbished from a reputable seller, works with any compatible carrier. That freedom matters: You can switch whenever a better plan comes along, instead of waiting for a payment plan to run out.

Many carriers also let you bring your own device and skip the installment agreement entirely. Ask whether a plan is cheaper when you do.

4. Look past the big three

Smaller carriers that rent space on the major networks, known as mobile virtual network operators, or MVNOs, often charge less. They also score well with customers.

In J.D. Power’s latest study, Consumer Cellular led postpaid (paying for usage after each billing period) MVNOs with 720 points on a 1,000-point scale, and Mint Mobile led prepaid (paying for usage upfront) MVNOs with 711. The average for the big carriers’ postpaid service was 612.

One example is Tello, a prepaid carrier that runs on T-Mobile’s network, with plans from $10 a month. Its Unlimited plan costs $25 a month with 50GB of high-speed data, and eSIM and hotspot access are standard. There is no contract, and you can keep your number.

Check coverage where you live and travel, then compare Tello plans.

For more ways to trim the bill, the Money Talks News cell phone plans page walks through options by how you use your phone.

5. Ask your current carrier for a better deal

If you would rather stay put, call and ask which current plan costs the least for your usage. Carriers revise their lineups often, and an older plan may cost more than a newer one with similar features.

Schulman said he halted another planned price increase as soon as he took over. “It’s a short-term win and a medium to long-term disaster,” he said at the conference. A customer who knows what competitors charge is in a stronger position to ask for a lower price.

The free phone may be fading at Verizon. The bigger number was always the monthly bill, and that is still yours to shop.