This is a class-action lawsuit. How can you modify a "grandfathered" plan?
OK, I'll bite since you've assumed everybody is familiar with US phone rental jargon. What's a "grandfathered" account?
Sorry, I don’t know if any of the answers you’re getting are really clear, so hopefully this helps both of you:
When a person signs up for a cellular service contract, the term of the contract used to be two years and if you ended early you had to pay a penalty fee. You could buy a phone for much less than the full price because the cost of the phone was included in the price for cellular service, with the penalty meant to cover the remaining cost of the phone you would have paid over the full two years. At the end of those two years, the penalty would drop off, but oddly enough your bill would remain the same, so you’d basically be paying monthly for a phone you never received. This was a major profit grab for cellular service companies, so they wrote their contracts to extend month-to-month indefinitely in order to keep these people paying more than others for a contract with no new phone.
Well, it turns out those original contracts with unlimited data weren’t such a good idea for cellular service companies even at the higher rate! So they created limited plans and told people they couldn’t keep their unlimited plan AND get a cheap phone when their contract renewed. Some people just started buying their own phones because they knew the unlimited data was more valuable than the discount on a new phone. But because the contracts had those permanent extension clauses, the cellular service providers were out of luck.
Of course, there are clauses which allow the companies to set new rates from time to time, but there are regulations and common law rules restricting those rate increases which is why they didn’t just jack up the price to $1000/month (which would be seen by the courts as unreasonable and effectively canceling a contract, which is not allowed).
Also, that $45 figure is misleading. Most companies used to charge X for phone, Y for text, and Z for data. Now they just charge one price for all of that together. The price you actually pay for a grandfathered unlimited plan is much higher than just the $45 data component.
Last edited: