Once every year for the past few years I’ve spent $100 to add 400 (or, with a bonus, 800) minutes and an additional year of service to my cellphone. I don’t use that many minutes during the year, so the total cost of my cellphone is $100 per year for the service, or about $8 per month. The phone itself cost $30. Let’s assume it will last at least 3 years, so that’s that’s about $10 per year for the phone. Add up the cost of the service plus the cost of the phone and we see that my cellphone costs me less than $10 per month.
This year, as I was purchasing my 400 minutes, I noticed I could add an additional year of service for $50. Total cost: $150 for the next 2 years. Now my total cost for cellphone service for the next 2 years is $75 per year or about $7 per month.