I have used Verizon Wireless for more than a decade. The service is good, but it is just too expensive, especially in our current debt situation. To be fair, I gave them a chance. I called to investigate whether there were any cheaper plans. Unfortunately for Verizon, we already are on the cheapest one and I need to follow through on my 2015 goal to find a better option.
Here is our unique situation: We have an account with four phones. I have a very basic phone (see picture), because my employer provides me with an unlimited-data iPhone, but I still want to call and text with my friends and family. Mr. Smith insists on paying for his father’s phone – another basic one – as the old man only wants to chat with other old men and occasionally send us confusing text messages. In exchange for cooking us dinner on a regular basis, we also pay for a basic phone for Mr. Smith’s brother. Mr. Smith is the only one with a smartphone and has a plan with data. Also relevant to this search is the fact that my brother-in-law will be leaving the country for one year. So we need to be able to suspend his service (Verizon will do it).
Verizon Wireless
We already have the cheapest plan through Verizon – an old plan which probably wouldn’t be available to new customers. Our plan is $9.99 per phone, $30 for data on the one phone (2GB), and $80 for our Shared Talk and Text (700 minutes and unlimited text). The total, before taxes and fees, is $150 per month. The bill comes out to approximately $177 per month.
Fortunately, three out of the four contracts are up. The last one goes through May 2015, so there would be only one cancellation fee ($175) or we could keep the one phone on Verizon and the monthly fee (talk and text) would be only $35.
If anyone is interested, the new plans are unlimited talk and text for $30.00 (basic phone) or $40.00 (smart phone). The cost for shared data is $40.00 for 1GB or $50.00 for 2GB. Under the new plan, the cost would be $180.00 or $190.
Well, time to consider the alternatives. There are quite a few choices out there. I focused on the two most-discussed options:
Consumer Cellular
This is a pre-paid service that uses the Sprint network.
The phones: basic ones are $35 or $60. Smart phones start at $80 and $100. But there is a SIM card that you can use for other phones. So perhaps we could find a deal on a used one.
The voice plans: $20.00 for 600 minutes or $30.00 for 1200 minutes, for one line. $10.00 per extra line to share minutes and talk to each other. Total would be $50.00 or $60.00.
The text and data plans: No extra charge to share if you have the family plan for voice. And quite a few options:
We would probably go with 5,000 texts and 1GB of data for $20.00, or 15,000 texts and 2.5 GB of data for $30.00 (that is A LOT of texts).
Our cost would be $70 or $80 per month for what we need (before tax and fees). If we went with the lower plan, we would save $80 per month. We would, however, need new phones. Let’s say we spent $230 on phones. It would take us 2.8 months to break even. Also, we have the Verizon cancellation fee if we do it before May – which is $175.00 (another 2.2 months).
Republic Wireless
This provider comes highly recommended by Mr. Money Mustache, so it already scores a few points in my book. Mr. Smith is quite concerned about coverage issues. One of his friends uses Sprint and encounters “dead zones” quite frequently in our area. He was pleased to learn that Republic Wireless uses Sprint and Verizon networks, in addition to Wi-Fi. The plans are simple and really cheap: $5 (unlimited talk/text/data over Wi-Fi), $10 (unlimited talk/text over Wi-Fi and cell, data over Wi-Fi), $25 (unlimited talk/text over Wi-Fi and cell, data over Wi-Fi and 3G network), or $45 (unlimited talk/text over Wi-Fi and cell, data over Wi-Fi and 4G network). Service for our four phones would only cost $55 per month!
The downside to Republic Wireless? A limited and fairly expensive selection of phones. They start at $100 and go up to $400. They are all smart phones, which might be quite the learning experience for Mr. Smith’s father. However, we would be saving almost $100 per month. And Mr. Smith’s current phone is looking pretty beat up. I did check on eBay and there are some options with respect to used phones. Even if we bought new phones totaling $400, the cost would be made up in approximately 4 months. While this is longer than it would be with Consumer Cellular, we would continue to save an additional $20-$25 per month in the future, hopefully have no issues with coverage, and all have fancy new phones.
Decision Time
I think that we will switch over to Republic Wireless and keep Mr. Smith’s dad on Verizon until his contract is up. Definitely be on the look out for a review in a few months.
Finally, any input would be greatly appreciated!
