Every month when I update our budget spreadsheet, there's one line I've been glaring at for a year: the cell phone bill. $148 a month for two phones. We had been with the same big carrier since before we got married, and our plan had slowly crept up with fees, "promotional" pricing that expired, and a phone payment Dan forgot we were still making.
Last month, we finally switched. Our new bill is $70 a month. Here's exactly what we did.
What we were actually paying for
I printed out the last bill and went through it with a highlighter, like a true nerd. Here's what I found:
- Two lines of "unlimited" data. The premium tier. Neither of us uses much data, because we're on Wi-Fi at home and at work most of the time.
- A device payment of $22 a month for Dan's phone, with four months left.
- An insurance add-on for each phone at $9 each. We have never used it once.
- Around $14 in taxes and "regulatory" fees.
- A $5 charge for a streaming add-on that came "free" for six months and then quietly wasn't.
When I checked our actual data use in the phone settings, I averaged about 6 GB a month, and Dan averaged 9. We were paying for unlimited and using a fraction of it.
What we switched to
We moved to a prepaid-style plan from one of the smaller companies that rent space on the big networks (these are often called MVNOs). The coverage is on the same towers we already had, which was my main worry. Our phones work just the same at home in East Oakland, at my dental office and on Dan's service calls around the East Bay.
We pay for 15 GB of data per line, plus unlimited talk and text. You pay upfront, and you get a better rate if you prepay several months at once.
The numbers
| Item | Old plan (monthly) | New plan (monthly) |
|---|---|---|
| Service, two lines | $90 | $60 |
| Device payment | $22 | $0 (paid off) |
| Phone insurance | $18 | $0 |
| Streaming add-on | $5 | $0 |
| Taxes and fees | $13 | $10 |
| Total | $148 | $70 |
That's $78 a month, or $936 a year. For us, that's most of a month of groceries.
How the switch actually went
- Paid off Dan's phone. The remaining balance was $88. We paid it off so the phone could be unlocked. You generally need your phone to be unlocked and compatible with the new network before switching. Most carriers have an unlock request process, and ours took two days.
- Checked compatibility. The new company had a tool on their website where you enter your phone's ID number. Both our phones were fine.
- Got our account and transfer PIN from the old carrier. You need these to keep your phone numbers. I found them in the app after a little digging.
- Signed up and activated. We used eSIM, so there was nothing to mail. It took about 20 minutes per phone, most of which was me reading instructions twice.
- Confirmed the old account closed. Porting your numbers usually cancels the old service automatically, but I called anyway to make sure there were no surprise charges. There was a partial month on the final bill, which I expected.
What we gave up
Honestly, not much. A few things to know:
- During heavy network use, our data can be slowed before the big carrier's own customers. I haven't noticed it.
- No physical store to walk into. Customer service is chat or phone.
- No more "free" phone deals. When we need new phones, we'll buy them outright, probably a year or two older model.
- No phone insurance. I bought two sturdy cases instead. With toddlers who love to throw things, this was not optional.
Should you switch?
I'm not going to tell anyone what to do with their money. But if you're like we were, paying for way more data than you use, check your usage in your phone settings. It takes two minutes, and it might be the easiest $900 a year you ever find.
After our PG&E adventures earlier this year (more on that someday), I'm on a bit of a bill-hunting streak. Internet is next. Wish me luck.
