IPhone 5C 'no service' - is it worth taking it in for repair?

I made the mistake of getting an iPhone 5C in February, mistake because this phone is obviously a lemon based on the amount of people who are having the "no service" problem with it. Even though I am in a strong signal area, I cannot reliably connect to the cellular network.
The problem started about two weeks after I did all the troubleshooting and suggested fixes as per the Apple website. I called Apple and they told me to restore the phone to factory settings. I did and the phone worked for about two weeks before it started to get flaky again.
Now, I'm lucky to get two minutes of connectivity a day. Yanking the SIM card is a pain (I have an Otterbox case that isn't easy to get into) and not worth the effort.
I called back Apple and they said I need to have the phone serviced. The nearest Apple store is eight hours away (yes, 16 hours round trip). So they said they can ship me another phone for $29 and a $500 deposit, mail in my phone, and they will fix it if it's broken, return it to me, and then I have to send the loaner phone back. I have an issue with the deposit thing (but, yes, I do see Apple's POV); once Apple has that money, they have it. I have no guarantee of ever seeing my deposit again and I'll effectively be paying twice for the phone since as I got my phone free on a two-year contract.
Has anyone actually jumped through these hoops to get a month-old phone fixed? Does Apple honour the return of the deposit? Should I just take a long weekend and go on a road trip to an Apple store?
My provider has done what they can, BTW. I had paid $100 for the phone and they reimbursed me that because of the issues I'm having with it and they also replaced the SIM card. At this point, the best they can do is send it back to Apple for evaluation, but there's the pesky deposit thing again.
I am so frustrated with this phone as I need it for internet (I have an amazing truly unlimited data plan) as we only have cellular internet in my area.
Thanks for any thoughts,
Rae

So they said they can ship me another phone for $29 and a $500 deposit, mail in my phone, and they will fix it if it's broken, return it to me, and then I have to send the loaner phone back. I have an issue with the deposit thing (but, yes, I do see Apple's POV); once Apple has that money, they have it. I have no guarantee of ever seeing my deposit again and I'll effectively be paying twice for the phone since as I got my phone free on a two-year contract.
Do as Apple suggests. The deposit is in case you do not return the loaner phone. Apple will NOT keep your money once you return the loaner phone. Apple will repair or more likely replace with a new or refurbished device. Make certain you ship the devices with a carrier that has tracking such as UPS and insure the device for $500.00.
Does Apple honour the return of the deposit?
Absolutely Apple will return the deposit when you return the loaner phone. Apple is not out scam anyone.
I made the mistake of getting an iPhone 5C in February, mistake because this phone is obviously a lemon based on the amount of people who are having the "no service" problem with it.
No, you did not make a mistake. When millions of devices are manufactured there are bound to be a few with issues. Only those that have issues will complain, those without issues will remain silent.
At this point, the best they can do is send it back to Apple for evaluation, but there's the pesky deposit thing again.
Do as Apple states. Otherwise live with your problem. Apple has offered a solution.

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