Common advice for saving money suggests reviewing your current spending, removing unnecessary items, and trimming back on the rest.
Canceling an expensive gym membership you hardly use and cutting down on dining out can yield immediate savings. Other obvious moves include replacing costly cable bundles with streaming services or swapping pricier name brands for more affordable generics.
But in many parts of your budget there aren’t easy, smart substitutes. Consider your mobile phone bill, for instance.
For numerous households, the monthly mobile bill is among the largest unavoidable expenses. Smartphones are ubiquitous, and plans for these devices can easily top $100 per line.
As more people ditch landlines and rely solely on mobile service, cell phones have become essential — and carriers are well aware of that. There’s little incentive for giants like AT&T, Verizon and Sprint to lower prices or enable bundles that might be more economical for consumers.
The upshot is a hefty monthly charge for most smartphone users. According to Engadget, that’s now about two-thirds of Americans. Thankfully, advances in technology are changing the landscape and giving consumers more choices for affordable, high-quality mobile service.
New, Nontraditional Entrants in Mobile Service
Low-cost alternatives and discount carriers aren’t entirely new. Companies such as Sprint, which owns the value brand Boost Mobile, offer cheaper options. Yet those lower-priced services historically came with compromises.
In the past, cutting costs often meant accepting spotty reception, slower data speeds and fewer handset choices. People could lower their mobile expenses — if they were ready to forgo a smartphone. Nowadays, however, newer providers leverage modern technology to deliver solid service and fast speeds on many desirable phones.
Below are three nontraditional carriers that provide plans and smartphones comparable to what big carriers offer — but at a fraction of the price.
Cricket Wireless
Cricket Wireless operates differently than the major carriers: instead of yearlong contracts, it offers prepaid service. Customers can bring compatible phones they already own, or choose from Cricket’s respectable selection of smartphones.
Cricket’s primary plans — Basic ($40/month), Smart ($50/month) and Pro ($60/month) — all include high-speed connectivity. The data allowances vary: Basic provides 500 MB while Pro includes 5 GB.
For those hesitant to abandon a large, established carrier, Cricket might be a sensible transitional choice. AT&T bought Cricket’s parent in 2013, with the merger formally approved in early 2014.
Although Cricket’s prices are only modestly lower than traditional carriers, it arguably delivers the best coverage among discount brands since it runs on AT&T’s LTE network. If you live beyond metropolitan and suburban centers, Cricket may be the top option for reliable service without the high fees — or the restrictive contracts — of major providers.
Republic Wireless
If you want something truly different from conventional carriers, take a look at Republic Wireless.
Republic stumbled during its early days. As with many new entrants, it faced technical snags and frustrated customers — especially since all support was handled online, which led to complaints when users needed help.
Today, Republic is a noteworthy option for affordable smartphones and dependable service.
Here’s how it works: Republic provides four plans from $5 to $40 per month. Customers choose between two Motorola handsets: the Moto G for $149 and the Moto X (a device often compared to iPhones) for $299. Phones must be purchased outright, but no contract is required. (If you sell your old device, try to get the highest price you can.)
Republic keeps prices low because the phones they offer are optimized to function on Wi-Fi. The $5 tier is Wi-Fi only, meaning the handset must connect to a network to send texts and make calls. The other plans — $10, $25 and $40 — include some cellular access. Republic leases network capacity from Sprint, so its coverage mirrors Sprint’s. When Wi-Fi isn’t available, the device automatically switches to cellular for voice, text and data.
An appealing feature is the ability to change plans up to twice per month, giving customers flexibility to adjust service for their needs.
I tried Republic after my Sprint contract expired earlier this year. Though I hesitated to trade my iPhone for an Android, my frugal instincts prevailed and I opted for the $25 plan (approximately $30 monthly after taxes and fees).
Since I’d been on Sprint before, I didn’t notice any drop in service quality. In my experience, the handoff between Wi-Fi and cellular is seamless. The Moto X replaced my iPhone admirably; I actually prefer the Moto X now because it integrates better with Google services than my iPhone did.
One minor gripe: call quality seems superior on cellular, yet you can’t disable Wi-Fi — if an accessible network exists, the phone will connect automatically. Still, that small trade-off is worthwhile because I save around $50 each month and still use a capable smartphone.
Other downsides: all customer support is via email, which may annoy some users. And because Republic leases Sprint’s network, the service isn’t helpful if you lack Sprint coverage or don’t have access to free Wi-Fi. For many people, though, Republic provides an affordable, contract-free substitute to pricey plans from major carriers.
FreedomPop
If a budget smartphone plan sounds appealing, wouldn’t a free plan be ideal?
The obvious questions are: how do they do it, and what’s the catch?
FreedomPop genuinely offers free phone service, but there are a few caveats. First, customers must supply their own Sprint-compatible phones. (FreedomPop sells a handset too, but it’s the very dated HTC Evo from 2010.)
Second, the free tier includes limits. You receive 200 voice minutes, unlimited texting and 500 MB of data per month. If you want extra data or faster speeds, you’ll need to pay for those upgrades.
Here’s a brief list of add-ons customers can buy if they exceed the free allowances:
- 2 GB of data: $18 per month
- Unlimited anytime minutes: $10 per month
- 4G speed: $3 per month
Some see FreedomPop as a cousin to Republic Wireless, since it also relies on Sprint’s network for data and in some areas piggybacks on Clearwire.
If FreedomPop serves your region, it may be worth investigating; limited coverage is one of its major shortcomings. The service is available only in select markets, so check availability before committing.
Still, FreedomPop is an excellent option for folks who need a smartphone but can’t afford a conventional carrier’s monthly bill. If you can stay within the usage caps, it’s hard to beat free. (Like this idea? Click to tweet it!)
Your Turn: Would you switch to one of these providers? Have you tried a low-cost carrier before?
