Cellphone savings worth research
Competition for wireless customers leads to a bewildering array of options - and a price war
When we looked into switching cellphone companies recently, we were soon drowning in options.
T-Mobile USA alone offers more than 40 individual and family plans. Verizon Wireless, AT&T, and Sprint Nextel offer dozens more. And then there’s a pack of upstarts offering prepaid service, including Boost Mobile (a unit of Sprint Nextel that uses Nextel’s network), Virgin Mobile USA (which uses Sprint’s network), and MetroPCS (which has its own network in Boston and some other cities.)
The great news is that all this competition has sparked a price war of sorts. Boost Mobile recently made a splash by offering unlimited calls and text messages for $50 per month - half the price of traditional plans with unlimited minutes. Virgin Mobile countered by offering unlimited calls for $50 (or $60 if you add in text messages). Now some say their plans are even cheaper. MetroPCS charges $40-$50 for unlimited calls and text. And TracFone just launched its own $45 option called StraightTalk.
If you just use your cellphone for emergencies or occasional calls, you could save even more by switching to a prepaid plan. For instance, we found a T-Mobile prepaid plan that allowed us to buy a block of 1,000 minutes good for a year for $100, which works out to less than $9 per month, less than one-third of the cost of the cheapest traditional monthly plans.
“The savings can be big,’’ said Jeff Blyskal. senior editor with Consumer Reports magazine. “Shop around. Look at options that are out there. And don’t be afraid of prepaid’’ companies.
Todd Wallack can be reached at twallack@globe.com.
Pick the right package for your needs
Study your bills. Figure out how often you call or text and when you use your phone. Then consider what type of plan works best for you. You can compare most major plans through websites, such as www.myrateplan.com.
Check out the coverage area. Consumer Reports readers complained about dead zones for T-Mobile and AT&T in Boston. But every carrier has dead zones. Make sure the service works where you live, work, and play. Look at the carriers’ coverage maps. And quiz your co-workers, neighbors, and friends about their experiences.
Consider the phone. Most major carriers offer plenty of models. But if you’re set on an iPhone, you’re locked into AT&T. Verizon has the rights to the BlackBerry Storm. Sprint has dibs on the Palm Pre. And T-Mobile has the first phone using Google’s Android software, called T-Mobile G1.
Read the fine print. Most major carriers give you 30 days to cancel to avoid a hefty early termination fee of up to $200. But T-Mobile offers 14 days, for instance. Also make sure you ask about extra fees for taxes, roaming, texting, and other features.
Are you 65 or older? AT&T and Verizon both offer inexpensive senior plans. But T-Mobile and Sprint offer similar plans open to everyone. And some prepaid options are cheaper still.
Overall, Verizon, the largest US wireless carrier, snatched top marks from both Consumer Reports and J.D. Power and Associates in their regional surveys. But some of its plans can be pricey. And no company is perfect for everyone. 