Are You Overpaying For Your Phone Bill? There May Be A Solution
For many of us, our phone bill is one of those pesky expenses we dread each month. It would be hard to live without our cell phones and our unlimited data, so we just keep paying.
A new survey from WhistleOut, in partnership with Mint Mobile, reveals that the average American spends around $157 per month on a cell phone plan from a major carrier like AT&T, T-Mobile and Verizon. In addition to that, all three carriers have upped their prices since the beginning of 2023. Roughly 40% of customers with those companies experienced an increase in their total bill in the last year. This hasn’t gone unnoticed by consumers — 1 in 4 Americans “can’t comfortably afford” their monthly cell phone bill, while 39% of clients with the three biggest carriers say they are overspending.
But the data shows Americans are rethinking their plans with major carriers. This year’s study showed 53% of Americans have a cell phone plan with AT&T, Verizon or T-Mobile. That’s down from 62% in last year’s study. And while 76% of consumers have opted for an unlimited phone plan, this may not actually be the most cost-effective option. The average consumer uses around 10-15 GB of mobile data a month. Part of the problem is many of us have little to no understanding of how much data we actually use — 30% of cell phone users don’t even know how to check their data usage.
How To Stop Overpaying
One thing is clear: the answer is not getting rid of our phone plans and our phones. In fact, almost 1 in 4 Americans have no way to use the Internet without their phones. Fifty-one percent of Americans say losing access to their cell phone would be “detrimental to their livelihood or wellbeing.” That number gets even higher when we look at younger generations — roughly 70% of Gen Z-ers say they need their phone for work. That makes even more sense when you factor in that about 35% of them do not have a personal computer.
So, what’s the solution for the Americans who, according to WhistleOut, are overspending by roughly $211 billion on their phone bills each year? One potential pathway is using an MVNO plan, which stands for a mobile virtual network operator.
What’s an MVNO — and How Much Could You Save?
What makes these providers stand out is they don’t have their own cellular tower network, per WhistleOut. Instead, an MVNO uses signals from the major carriers, so data speeds can be slower, and you may have less flexibility in the plans you can choose. You also may only be able to deal with the provider over the phone or online rather than at a physical retail location.
But what they don’t offer in typical convenience, these plans may make up for in price. The average MVNO plan costs $30 a month, a major savings from the $157 a month American consumers are currently paying on average. Switching from a major carrier to an MVNO could save more than $1,500 per year, according to WhistleOut. Some Americans have already caught on — about 47% of cell phone users now use an MVNO plan.
What’s the Difference Between MVNOs and Traditional Carriers?
MVNOs function as a type of third-party provider: they buy access to the data and minutes of standard cell carriers at a wholesale price, per WhistleOut, and they resell it to you at a lower rate than those companies. The primary benefit of this, of course, is the cost savings to the consumer.
But it does come with some drawbacks. First, it will be more difficult to bundle purchasing a phone and a service plan the way that standard carriers offer. Second, and perhaps the more pressing concern, is that your data will not be top priority for carrier networks in times of peak use, meaning that if you’re in a crowded area and trying to use data, you may not have a high speed if you have an MVNO. That said, some MVNOs work with multiple carriers, which could offer you more flexibility — although those carriers will still prioritize their customers over those of an MVNO.
Choose Your MVNO
Mint Mobile
How it works: Mint Mobile works by, according to its site, letting you “choose the data amount that’s right for you.” The company works with the T-Mobile 5G network. Enter your zip code here to see how compatible your location is — as well as your phone number. Once you join Mint, you’ll receive a SIM card with activation instructions. If you decide to keep your current number, you’ll need to get certain information from your prior cell carrier, like your account number, PIN and billing zip code.
Once you’re ready to go, at the end of every month, Mint will even send you an email with how much data you use. Data can also be added ad hoc for $10 per gigabyte or $20 per 3 gigabytes. You can also upgrade your plan at any time online.
How much it costs: Plan costs vary based on how much data you’ll need per month, but all plans start at $15/month — with a $45 upfront payment required — for the first three months. You can choose from 5, 15 and 20 gigabytes or unlimited data and plans come in three-month, six-month and 12-month increments. All plans require an upfront payment of the entirety of the cost in advance. Taxes and fees are extra.
Visible Wireless
How it works: Visible is a Verizon company, so you have the assurance of a Big Three phone carrier behind you. Its network covers 99% of the population, so you’re likely well-placed to take advantage wherever you live. That said, you can input your ZIP code here to see what quality of coverage you might have.
You can either buy a phone through the company or bring your own phone to register with Visible. If you choose to use a phone you already have, you’ll want to check your compatibility here. Assuming it is, you can either activate immediately with an eSIM or wait for a physical SIM card. And if you prefer a new phone, you can buy certain models at discounted prices through the platform.
How much it costs: Visible offers monthly and annual plans. At $20 a month, you can receive unlimited data, talk and text on Verizon’s 5G and 4G LTE networks. You’ll also be able to use unlimited Hotspot access and unlimited talk and text to Mexico and Canada. At $35 a month, instead, you’ll get unlimited premium data on Verizon’s 5G Ultra Wideband network — and you’ll get unlimited Hotspot access at twice the speed as the regular Visible plan. You’ll also have a more expansive international plan. If you choose to pay annually as opposed to monthly, you’ll save $25 for the less expensive plan, at $275, and save $145 for the higher-priced plan, at $395 a year.
US Mobile
How it works: US Mobile allows you to start with a 30-day free trial and eSIM, per this video. Rather than work with one carrier, US Mobile is one of the MVNOs that works with a multitude of carriers. The company’s app also allows you to easily monitor your data usage and change your plan, if necessary.
How much it costs: Like Visible, US Mobile offers both monthly and annual plans. Monthly plans start at $25 a month and offer unlimited data, talk and text, 10 GB Hotspot data and the ability to add on international calling for $3 a month. Unlimited premium — at $44 a month — gives you unlimited data, talk and text, 50GB Hotspot data and up to 10GB in international data. Spend $270 for the annual version of the cheaper of the two plans — saving about $2.50 a month — and $390 — saving about $11.50 a month — for the more expensive of the two. US Mobile also offers a third flex option if you decide to pay annually. This comes with unlimited data, talk and text, 10 GB premium data, 5 GB hotspot data and international calling and texting at $210 for a year.
Twigby
How it works: At Twigby, you can either bring in your phone or buy a new phone through the platform. If you have a pre-existing phone already in mind, you’ll want to check its compatibility using the IMEI number here. Twigby won’t say which carrier it works with, but it does call it the “nation’s largest and most reliable network.”
How much it costs: Much like the other providers on this list, Twigby has a variety of plans to choose from. All of them are based on the amount of high-speed data requested per month — from 2 GB to 20 GB. Prices range from $5 a month for the least amount of data to $25 a month for the most. These rates also go up to $15 to $35 after the first three months. All four plans offer unlimited talk, text and data — but once the limit is reached, the speeds will slow to 2G, which “does not support streaming or high data usage applications,” per Twigby.
Google Fi
How it works: Google Fi works using 4G LTE, nationwide 5G and hotspot tethering. Still, it’s important to note that 5G is not guaranteed everywhere. It’s best to input your location here and see what Google Fi can provide. Much like other MVNOs, Google Fi uses a variety of carriers to get you connected. All plans include coverage in the U.S., Canada and Mexico, per the company’s site. You can also apply your network to your smartwatch. Perhaps the biggest perk of Google Fi: The group is “not subject to data traffic deprioritization,” meaning you won’t experience those bothersome slow-downs. It’s also available in more than 200 countries, which is a benefit if you’re a frequent traveler and need to use your phone abroad.
How much it costs: For a single person, Google Fi offers three plans. They’re priced at $50 a month for unlimited, $65 for unlimited plus and $20 plus $10 for every gigabyte for the flexible plan. The simply unlimited plan includes 5 GB of Hotspot tethering and data included in Canada and Mexico, while the unlimited plus offers unlimited hotspot tethering, data in more than 200 destinations, unlimited shareable data with tablets and 100 GB of storage with Google One. The flexible plan, on the other hand, is the most restrictive: it offers Hotspot tethering and data in more than 200 destinations, but with the caveat of paying $10 for every gigabyte used. You can also try Google Fi for free for seven days.
Writer Elizabeth Djinis is a contributor to The Penny Hoarder, often writing about selling goods online through social platforms. Her work has appeared in Teen Vogue, Smithsonian Magazine and the Tampa Bay Times.
