Tony Talks Business
How Phone Companies Make Money Off You
The new iPhone costs $1,199, and Verizon, AT&T and T-Mobile will all give you one for free. But do you know what plan comes with it, and how long it ties you in? And have you ever read the fee on your bill that went up more than 40% in under a year?
This is how phone companies actually make money, and why the free phone is the most expensive thing in the shop.
The numbers in this video
$1,199The price of the new iPhone 18 Pro, the phone the big three carriers will hand over for nothing.Source: Yahoo Finance
$95The monthly price of Verizon's Unlimited Ultimate plan on a single line, the plan the free phone comes with. The cheapest unlimited plan on the same wall is $65.Source: Droid Life
$19What Verizon Mobile Protect costs each month for one phone. Over 36 months that comes to $684.Source: Android Authority
$3.78Verizon's monthly administrative fee on every line since August 2025, up from $3.50. It is not a tax.Source: billcreep.com
$83.7BWhat Verizon took in from wireless service in 2025.Source: Verizon 4Q25 earnings release (SEC filing)
$45.5BWhat Verizon alone spent on airwaves in the 2021 C-band auction, which raised about $81 billion in total.Source: satellitetoday.com
Every number has a source
Chapters
- 0:00The Offer
- 0:50The Store
- 2:50The Bait
- 3:50The Trade
- 4:49The Leash
- 6:23The Lock
- 7:13The Plan
- 8:30The Fee
- 9:50The Promise
- 10:24The Cover
- 11:36The Discount
- 12:33The Towers
- 13:33The Airwaves
- 14:50The Twin
- 16:20The Payout
- 16:58The Squeeze
- 18:29The Verdict
Sources
17 pages the figures in this video were read from.
