Picking a new cellphone plan

Switching wireless carriers (part two)

Plus: The best Apple takes, a killer keyboard deal, and the first thing to set up in iOS 18

Jared Newman | September 17, 2024

Hey there! I’m Jared Newman, a veteran tech journalist, and this is Advisorator, my weekly tech advice newsletter. If someone shared this newsletter with you, consider signing up to get it every Tuesday.

Before we get to this week’s column, a quick note that I’ve updated my “How to pick a data plan” guide for Advisorator’s paid subscribers, including:

An up-to-date spreadsheet comparing every unlimited data plan from AT&T, T-Mobile, and Verizon, including family plans.
A detailed comparison of new iPhone deals from the major carriers, which vary based on the plan you have and the phone you intend to trade in.
Whether it’s worth considering an alternative carrier, encompassing much of the info that I’ll get into below.

Thanks for considering it! Now, onto this week’s newsletter.

Last week, I wrote about how you can test drive the networks of T-Mobile, Verizon, and AT&T for free, and how I’ve established that T-Mobile is a better fit for me than AT&T here in the Cincinnati suburbs.

Still, I’d rather not pay upwards of $75 per month for a T-Mobile data plan. With alternative wireless providers such as Mint, US Mobile, and Tello, you can get similar network coverage for a faction of the price. These providers, known as Mobile Virtual Network Operators or “MVNOs” in industry jargon, lease excess network capacity from AT&T, T-Mobile, and Verizon. Some are even operated by the major carriers themselves.

But with new iPhones arriving on Friday, I was curious whether the math on these alternative providers really worked out. If T-Mobile will give me a free iPhone 16 for signing up, are the savings all that significant? Here’s what I’ve figured out:

Picking an alternative carrier

To sort through the dozens of MVNO options, I turned to PrepaidCompare.net and BestPhonePlans’ plan finder, both of which let you specify your desired features and find wireless plans that match. While the BestPhonePlans tool has a slicker presentation, PrepaidCompare has some extra filtering options and easier-to-read results.

I’m looking for a plan on T-Mobile’s network with unlimited data, calls, and texts, plus lots of high-speed data and mobile hotspot use. I received lots of suggestions from you all after last week’s newsletter—including numerous endorsements for Mint Mobile and some for Tello—but after examining the options, I’m leaning toward US Mobile.

US Mobile is unique in that it works with all three major networks, with a “Teleport” feature that lets you hop between them. The top-tier Unlimited Premium plan, which costs $44 per month or $390 per year, includes 100 GB of high-speed data per month, 50 GB of hotspot use, and unlimited Teleporting, plus free data overseas in many countries.

That plan falls in between what T-Mobile offers with its $75 per month Go5G plan (100 GB high-speed data, 15 GB hotspot) and $90 per month Go5G Plus plan (unlimited high-speed data, 50 GB hotspot). Since I’d rather have the extra hotspot usage, US Mobile would save me $57.50 per month if I paid for a year up-front, at least on the surface.

Doing the math

When you factor in T-Mobile’s phone subsidy and other perks, the savings aren’t quite as steep.

For one thing, T-Mobile’s higher-end plans include a $7 per month savings on Netflix, which I already pay for. That alone knocks the potential savings down to $50.50 per month.

The bigger snag is the cost of buying a new, high-end phone. T-Mobile’s Go5G Plus plan takes $800 off any iPhone 16 model when you trade in an iPhone 11 Pro or newer and agree to a two-year payment plan. With US Mobile you’re on the hook for full price, minus whatever your old phone is worth through Apple trade-in or other buyback sites such as Back Market.

So how long would it take to break even with US Mobile? Here’s the equation to follow:

Break-even point = (Major carrier subsidy value − Old phone trade-in value) / monthly alternative carrier savings

Whereas T-Mobile would give me an $800 subsidy in exchange for my old iPhone 13 Pro Max and a two-year commitment, that phone would be worth about $400 if I traded it into Apple directly. Per the equation above, I’ll be saving money with US Mobile after just eight months, no contract necessary. Over T-Mobile’s two-year commitment period, I’d wind up spending $800 more.

Of course, your own calculation may vary based on other factors. Family plans and senior discounts can make the major carriers more economical, as can additional perks such as Verizon’s discounts on streaming services. On the other hand, mid-range and refurbished phones can significantly defray the cost of an alternative carrier. Keep all that in mind as you’re adding up the monthly savings.

Potential pitfalls

US Mobile and other alternative providers have other trade-offs worth knowing about.

The main potential pitfall is de-prioritization. When their networks are busy, T-Mobile, Verizon, and AT&T almost always give preference to their main customers while slowing down everyone else. (Specifics on priority tiers can be hard to find, but this Reddit post has more useful details.) How much of a problem is this, and does US Mobile’s Teleport feature help mitigate it? I’m eager to find out.

Watch out for domestic roaming as well. While the major carriers have roaming agreements with small, regional networks to help with coverage in rural areas, that’s not a given with alternative providers. The PrepaidCompare site does let you filter those who have domestic roaming support. (US Mobile isn’t listed even though it supports roaming on Verizon’s network.)

Finally, brick-and-mortar presence is a rarity with these providers. While major carrier sub-brands such as Boost and Metro by T-Mobile have stores you can visit for help, most don’t. That makes quality of online support all the more important.

Wish me luck! I ported my number out from AT&T and onto US Mobile yesterday. If it doesn’t work out, at least I’ll have another chapter in this saga to write about.

News, tips, and deals

Advisorator’s paid subscribers get the full newsletter every Tuesday, including bonus tips, news roundups, and deals. Here’s what I’ve got in this week’s edition:

The best takes on last week’s Apple news.
The first thing to set up after installing iOS 18.
A fun app for counting down to upcoming events with friends.
A huge discount on my favorite keyboard, plus savings on phones, tablets, laptops, and audio gear.
The aforementioned guide to picking a data plan from the major U.S. carriers.

Thanks for reading!

Got tech questions for me? Just reply to this email to get in touch.

Until next week,
Jared