It looks like AT&T has some new, affordable dumb phone plans. The one that caught my eye was the 500 minutes, unlimited text, unlimited data for $35. Which plan were you looking at?
Do you know the model number on the phone? It looks like there are different Rugbys, and different model numbers often pick up different frequencies. T-Mobile has its 2G on the 1900 Mhz band, and the models I'm finding seem to support it, but there could be models that do not.
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