I'm not sure I get you. You already had a phone and you were charged an
activation fee for BOTH? (one being creditted?)
The 'free' phone is the add-a-phone?
They shouldn't have charged the activation fee for the first phone if you
already had it, the second activation fee should have been waived if you
locked in for another 2-years, but it depends on who you spoke to, and the
particular promo that you got the phone for free.
FYI, nothing is ever 'free'
The plan does sound right though.
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