Tips & Tricks
07.17.24
Finding a good cell phone plan can oftentimes feel like a Goldilocks story – some are too expensive, some don’t have enough data, others take too much effort to qualify for – it can be exhausting to find the right one. To make it easier, we put together this simple guide that answers four basic questions to find the right phone plan: How much data do I need, what coverage works best for my area, what data speed should I look for, and (probably most importantly) what is my budget.
1. Determine how much data you need
Picking a phone plan will depend entirely on what kind of data plan you’re looking to get – limited data or unlimited data (or maybe no data at all!) A limited or no data plan can be cheaper, so it’s important to first understand just how much data you would actually be using on a regular basis.
According to an Ericsson report, the average mobile data usage in North America in 2024 was 22 GB. To find out how much data you need personally, look through the settings in your iPhone or Android phone to find your monthly data usage , and if you’re curious, which apps contributed the most to it.
How to find out how much data I need if I never had a data plan
If your main source of connection right now is Wi-Fi and you’re shopping around for your first data plan, using your most used apps list is a great way to determine the right plan for you. Answer these questions:
Are your most used apps streaming-heavy? (Spotify, YouTube, online games, Netflix)
Are your most used apps social-heavy? (Instagram, TikTok, Snapchat)
Are your most used apps messaging heavy? (WhatsApp, Messenger, email)
If you answered yes to the first one, then you will be better off looking for the best value for an unlimited data plan.
If you answered yes to the second and third one, then you can likely get away with a cheaper, limited data plan. Note: Those social apps can add up in their data usage, so if you will be spending a significant amount of time on them over data and not Wi-Fi, you likely will want to consider an unlimited data plan as well.
If all you're looking for is to stay connected, then look for a talk & text only plan.
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2. Select the network with the best coverage in your area
Having a phone that can’t connect to any service where you live is pointless, so this is a crucial step in your search for the right phone plan.
The "Big 3" Networks
In the U.S, all the mobile coverage is provided by the big “3” networks: AT&T, T-Mobile, and Verizon. Each will have its own advantage of covering one area over another, so it’s important to know which one has the strongest coverage in yours. You can use the FCC’s mobile map to explore all three networks’ coverage so you can easily compare.
It’s important to note that this does not mean that you can only find a plan with one of those carriers. While Statista's latest report shows that these 3 networks account for 93% of the market share, the remaining 7% is made up of MVNOs – smaller carriers allowed to use the Big 3's towers for their own coverage.
MVNOs
The smaller carriers mentioned above are known as MVNOs (Mobile Virtual Network Operators), of which there are over 130 in the U.S! These carriers simply lease network access from one (or more) of the Big 3, allowing their customers to enjoy the same coverage for a cheaper price. So if you’re looking for a cheaper phone plan, find out which MVNOs operate on the network of your choice, and shop around for one of their plans!
3. Find out what data speed(s) you need
Knowing how much data you need is an important step, but it’s not the end of that conversation. Depending on what you need the data for, you also need to consider what kind of speeds would be acceptable for your usage. For example, video streaming (YouTube, Netflix, etc.) requires a minimum data speed for adequate performance (you don’t want it to start buffering at a pivotal scene), and if you’re someone who likes to upload a lot on-the-go –stories, snaps, TikToks, etc. – upload speed is naturally going to be a priority.
Thankfully, all carriers are required to disclose the data speeds on each plan that they offer (both download and upload), which can be found in the “broadband fact sheet” available under each data plan (as mandated by the FCC).
Something else to think about is the phone plan provider’s network priority. A lot of MVNOs will actually note that their data is subject to be deprioritized during times of congestion.This just means that if there are a lot of people on a network at one given time (especially if you live in a metropolitan area), that network (AT&T, Verizon, or T-Mobile) will prioritize their own customers first, and if you’re on an MVNO, you will experience slower data speeds during that time.
4. Shop within your budget
While the previous steps are all important in finding the right phone plan, none of them truly matter if you don’t have the budget to accommodate them. J.D Power recently reported that the average monthly cost for phone service was $141 in 2024. If you ask me, that's an incredibly steep price, adding up to almost $2K in a year!
So before you start, make sure to look over your monthly budget and figure out how much can be – and how much you're willing to be – allocated toward a phone service plan.
5. Select the type of phone plan based on your needs
There are two types of plans: postpaid and prepaid.
A postpaid plan is one where you are billed at the end of a monthly cycle, with the possibility to incur extra charges based on usage or any other features as per the plan’s terms. This is what is commonly offered by the “Big 3” carriers on their flagship plans.
A prepaid plan is one where you pay upfront, so you won’t incur any extra charges (but you also don’t have the flexibility to use up more data or add on any features like roaming without paying for it first.) This is what is commonly offered by MVNOs.
Postpaid vs. Prepaid Plans: Pros and Cons
Postpaid
Prepaid
Pros:
- Higher data limits and extra perks, like complementary streaming subscriptions.
- Network priority
- Multi-line discounts – if you activate more than one line, those monthly prices do get reduced the more lines you add on.)
- Device financing – You can qualify for a low monthly payment for a new phone through one of these carriers rather than paying for one in full upfront.
Pros:
- More affordable.
- You only pay the agreed upon amount (no potential to incur extra charges).
- No contracts – more flexibility to change your plan as your needs change.
- No credit checks, making them more accessible.
- More choices – there are significantly more prepaid plans available, so you can shop around more and find one that works for you based on all four criteria that we outlined above.
Cons:
- Significantly higher monthly cost for a single line.
- These plans tend to lock you into a contract (24 to 36-month terms).
- A credit check may be required.
- You run the risk of incurring extra charges through data usage, roaming, or any other features that are an extra cost as per the plan's terms.
Cons:
- Network priority – These plans are usually deprioritized during network congestion.
- Lower data limits – While most of them do offer unlimited data plans, the set limits for high-speed data on those is usually lower (10-50GB)
- No perks of extra features
TextNow Tip: You can compare how much you can save by financing a phone or buying one outright with a phone plan of your choice with a phone bill calculator.
6. Figure out how many lines you need
The number of lines that you need to activate can impact your budget and phone service planning. As we now know, signing up for multiple lines significantly decreases the monthly cost of a phone plan if you're opting for a postpaid plan with Verizon, AT&T, or T-Mobile. So it's important when you're shopping around for a phone plan to know just how many lines you need.
7. Check features, promotions, or offers
Another factor to consider is whether there are any promotions or offers that are worth signing up for. For example, there are a slew of offers for new customers many carriers support, as well as phone deals that could make the long-term savings worth it. Reddit and YouTube are great resources for finding these promotions if you're not up for sitting online for an hour searching for them yourself.
8. Compare the cost-to-value of the phone plan
Lastly, after you've done all your research, figured out the type of plan you need, the network coverage that works in your area, the budget, the lines, the last thing to do is to compare the cost-to-value of the phone plans you shortlist.
With over 130 carriers in the U.S, you're going to find a lot of plans that fit most or all of your criteria. So this step is important in picking the right one – taking all the factors we mentioned: Data, Network, Data Speeds, and Budget, and comparing the different plans under those factors to figure out which one gives you the best value for the monthly cost. For example, if you find a cheaper plan, but it has slower speeds and you like to stream YouTube a lot while out, you may opt for a more expensive plan that can support that without going over your budget.
Are there any free phone plans?
Yes, it is possible to get a free cell phone plan. You can opt to work with government programs or use TextNow for free phone service without any further qualifications or fine print.
Qualifying programs like Lifeline can reduce the recurring monthly charge by $9.25 ($34.25 for those on Tribal lands), which can bring a phone plan close to $0, if not $0 on select plans. They also work with TruConnect to get further qualifying households (based on your income) free government phone plans.
The problem with these programs is that there is a lot of paperwork to deal with, and it can be difficult to quality for. Alternatively, you can sign up for a TextNow account with just an email and get a free local phone number to use immediately for unlimited calls and texts over Wi-Fi. If you need nationwide coverage, you will have to spend $4.99 on a SIM card, but once it's connected, you're able to use your phone with your TextNow number on the nation's largest 5G network for free. Plus, you'll have free access to essential apps like email, maps, and rideshare (Uber and Lyft) for no additional cost.
If you have any questions or comments, send us a note at [email protected]!
