When you have a shitty old pre-paid phone because you or your parents are too cheap to buy a blackberry or android. Phone shame also happens when you have a flip phone or something from metropcs and you are just too embarrassed to take it out in front your friends because it is just so old, bulky, or ugly.
Ross:Hey whats your phone number
(Brian takes out crappy flip phone)
Ross: Tuff cell kid whats the a Razor flip phone, that shit was cool when I was in 4th grade.
Brian: Yea, I have a bad case of phoneshame.
Ross: HAHA! IT STILL HAS A CINGULAR LOGO ON IT