It seems phone plans go hand-in-hand with Tylenol, Aspirin, or any kind of drug that relieves headaches. You’ve heard that some plans are better than others, but it’s practically a rite of passage to be bamboozled by your phone bill in one form or another. It seems every plan comes loaded with fine print gotchas and price add-ons.
Finding the cheapest phone plan is a headache, but thanks to the phone’s ability to work its way into every aspect of our lives, we’re pretty much bound to pay a phone bill every month. For most of us, our cell phone could cost hundreds, if not thousands, every year.
These days, the cell phone market is filled with volatile shakeups. Carriers like T-Mobile and Sprint have introduced new plans that have replaced the traditional two-year contracts. And now, more than ever before, it’s a buyer’s market. Here’s our guide to the best, cheap phone plans.
Types of plans
If you know where to look, there are slew of different plans available, but first, we’ll explain a few essential terms.
Month-to-month / no-contract plan: Going month-to-month instead of signing a two-year contract with a phone carrier makes your phone bill a whole lot simpler and can ultimately save money. That’s worth remembering, especially when you end up paying more than $500 on an unsubsidized phone. In some cases, you can join a hybrid plan that is technically “no-contract,” but allows you to pay off your phone over 12 or 24 months.
Prepaid vs. no-contract: The difference between the two plans is how you pay. Prepaid plans require you to purchase minutes (a.k.a. refill cards). These plans will give you minutes and data until you deplete your refill card. No-contract plans will bill you every month and are usually more expensive, but you’ll most likely get unlimited talk and text.
MVNOs: Lesser known companies like Republic Wireless and Ting are called MVNOs (Mobile Virtual Network Operators). They ride the wireless infrastructure of the major carriers. Oftentimes they can offer cheaper prices than the big boys, but are mostly designed for phone users who don’t do much more than check their emails.
Option 1: Family plan
Family plans are offered by all four major carriers. These kinds of plans will cost more up front and require more data, minutes, and texts.
The elimination of phone contracts also means family plans are offered without contracts. You’ll go month-to-month and receive all the coverage and 4G data plans. Bundling lines together will usually result in overall savings in the long run. Adding extra lines will cost between $30-50. Let’s compare the best family plan deals offered by each carrier.
The overall best family plans from each carrier
Lines
T-Mobile
Verizon
AT&T
Sprint
2
$100 w/Unlimited Data
$140 w/Unlimited Data
$115 w/Unlimited Data
$100 w/Unlimited Data
3
$140 w/Unlimited Data
$160 w/Unlimited Data
$135 w/Unlimited Data
$130 w/Unlimited Data
4
$160 w/Unlimited Data
$180 w/Unlimited Data
$155 w/Unlimited Data
$160 w/Unlimited Data
5
$180 w/Unlimited Data
$200 w/Unlimited Data
$175 w/Unlimited Data
$190 w/Unlimited Data
* Best prices are in bold — Some are ties.
Winner: A tie between T-Mobile and Sprint
T-Mobile and Sprint offer what are undoubtedly the cheapest 2-line family phone plans, but Sprint, Verizon, and AT&T are, financially speaking, better options for larger families that consume lots of data and will appreciate having an unlimited amount to work with.
Option 2: Individual phone plans from the major carriers
Individual phone plans require customers to pay once a month. This is ultimately cheaper than signing a contract, and will also provide the ease-of-mind that your rate won’t spike in the next two years.
Most of the major carriers charge overage fees when you exceed your data limit. The cost of these fees vary by carrier, but it’s always a specified amount per gigabyte of data you use beyond your allotment. If you don’t want to worry about overage charges, you go with one of the big four’s unlimited plans. But be prepared to have your data speeds throttled should you exceed a certain data amount.
The overall best individual plans from each carrier
Verizon
Sprint
T-Mobile
AT&T
$35 w/ 2GB
$40 w/ 2GB
$50 w/ 4GB
$70 w/ 8GB
$80 w/ unlimited
$50 w/ unlimited
$70 w/ unlimited
$60 w/ unlimited
*Best prices are in bold.
Winner: T-Mobile
Sprint’s unlimited plan for $50 is definitely a good deal, however, in our breakdown of Sprint’s unlimited plans we point out how the carrier has struggled with data speeds in the past. And if you like gaming or streaming music, both are cut back and lacking in data speeds in comparison to Sprint’s HD video streaming. The carrier also has notoriously spotty coverage in rural areas. Its competitors have better overall coverage and a wider selection of phones, but for the extra $20, T-Mobile has better perks as part of its Unlimited One plan. T-Mobile’s unlimited data option may also be a far better deal than both Verizon and AT&T, if it covers your area.
Option 3: Don’t overlook MVNOs
For all the hubbub, the reality is T-Mobile does offer cheaper phone plans than the other major carriers. But so do many other prepay and no-contract carriers.
There are a ton of lesser-known carriers, known as MVNOs, each of which buys minutes and data from major carriers and allows you to ride the major networks contract-free.
For some users, these “remixed” plans allow greater flexibility, given the low-budget options, restriction capabilities, and their sheer convenience when traveling. There are several setbacks to MVNOs, with the most notable being inconsistent customer service and obscure terms and conditions. Some of these MVNOs can also have a smaller selection of phones that still cost hundreds, and many of the phones may be refurbished instead of brand new.
The best plans from MVNOs
Republic Wireless
Ting
Metro PCS
FreedomPop
$20 w/ 1GB cell data
Customizable
$30 w/ 2 GB
Free w/ 500 MB data
$30 w/ 2GB cell data
$40 w/ 3GB
$20 w/ 1GB
$45 w/ 4GB cell data
$50 w/ unlimited
$30/ unlimited
* Best prices are in bold.
Winner: FreedomPop
A free phone plan is awfully attractive, but you only get 500 MB of data, which is basically nothing in 2017. Just $30 a month for unlimited everything is much harder to pass up. Be aware that you’ll get 4G speeds up to 2GB, then your speeds are throttled, so no excessive streaming or downloading. Some may see FreedomPop as being too good to pass up, though, especially considering you can bring your own phone. That’s not a slight against their own list of phones; some may be used or refurbished, and they’ll still get the job done, but there’s something to be said for the ability to buy your own phone outright and then choose the service you want.
What’s best for you:
As attractive as the ultra-low price of FreedomPop may be, it’s only a realistic option for light users. The rest of us will be better off with T-Mobile in every category. Their affordable data, fast service, and high-end phones are all offered at a reasonable monthly rate. Their flat-rate prices are terrific for family plans (or anyone who wants to be in a group). It’s also the best way to save, and gain all the benefits of the major carrier’s service. Even if you’d rather stick to an individual plan, Sprint’s $50 unlimited plan, while enticing and cheaper, has too many drawbacks compared to T-Mobile, and even AT&T.
Updated on 5-16-2017 by Kyree Leary: Updated text, prices, and links to reflect recent changes.