High cell phone bills (like the one I used to have) are no longer necessary, if consumers are willing to go plan-free and keep their phones and providers separate.
What I’m about to share with you isn’t how to find the cheapest cell phone carrier, plan, or phone. It’s about how to reduce your cell phone bill permanently — no matter what type of phone you choose, no matter where you live, and no matter what carrier you choose.
Cell phone service seems costly because phones are packaged with expensive contracts instead of encouraging customers to buy new or used handsets at market price. Would you ever consider buying a desktop computer from your internet service provider, and paying for it monthly with interest? This is what happens when you buy your phone from your carrier.
When we buy or upgrade phones as part of a plan or contract, the price will be higher for several reasons: Retail markup; interest and insurance to protect collateral; encouragement of frequent trade-ins and upgrades; early termination fees. None of these are a win for the consumer.
The quickest way to change this dynamic and begin saving yourself money is to go contract free and buy your phone somewhere else. This separates ownership of your phone from your carrier, allowing you to pick a lower cost subscription or prepaid plan that puts you in control of your costs.
Separating my phone purchases from my carrier was a revelation for me. Once I realized the benefit, I was able to lower our annual cell phone cost from $1,719 to $311 (not including the cost of two used iPhones). It’s now a little embarrassing to me that I ever paid so much.
I find it liberating to carry around a phone that is valued at less than $100 but works flawlessly and costs less than $12 per month to operate. I feel almost guilty when I think about the prices that others are paying. It’s like I’ve discovered a secret that I want to share with the world.
I shop for phones as I would any other electronic device, usually on Amazon, Ebay, or Craigslist. Typically I buy used, but recently I purchased a new iPhone from the Apple store for our son, and my method still works the same:
How to do cheaper cell phone service
- Buy a new or used, unlocked phone for anywhere from $50 to $600.
- Research carriers and find one with the right features for you, and who is compatible with the phone you just bought.
- Enjoy a consistently lower bill.
For those who want to stay with their current carrier, you can reverse steps 1 and 2. Just check with your carrier first to ensure compatibility before purchasing a new or used phone.
The relationship between phone and network is fluid, empowering consumers to experiment with combinations of phones, carriers, and payment arrangements as desired. This differs from the message of the big brands, who encourage loyalty to one entity that will provide phones and network access for entire families, often at a premium price.
While most people will continue to purchase phones on credit, and directly from their carriers, it is unnecessary. In this day and age, consumers are able to purchase their phones from any store or person they wish, and then connect it using their existing phone number via any compatible carrier.
Separating your phone purchase from your carrier will help reduce costs even if you do stick with a big brand company. Owning your phone free and clear gives you more leverage in choosing how, and how much to pay for your service.
The big brand marketers will never relent in their efforts to service all of our cell phone needs. But in my mind their package deals are overpriced and short on value. If you are like me, you’ll enjoy the autonomy, flexibility, and savings that come with separating your phone from your carrier.
Q & A
Q: If I choose a discount carrier will the quality of cell phone service or coverage potentially be worse than I’m used to?
A: Most discount carriers rent network bandwidth from the big companies, so the network is the same. I personally have not noticed a difference, but if you do have issues you can always switch back or change to a different carrier. And keep in mind that you can stick with your original cell phone provider if you want to, and just purchase your handset elsewhere.
Q: How is the customer service at these discount carriers?
A: I have used three different carriers carriers, and all have had excellent and accessible voice, email and website support. If you aren’t technically savvy, you may want to stick with a carrier that has brick-and-mortar stores, so you can get help in person.
Q: How difficult is it to find compatible phones and carriers?
A: I found that I prefer to purchase a phone first, and then find a carrier that fits it. But you can do the opposite too. Just be sure and contact your carrier to verify a phone’s compatibility before purchasing it. Overall difficulty: low.
I find used phones on eBay, Amazon, and Craigslist. Or you can ask around — it’s likely that several of your friends have unused phones sitting in their junk drawers, waiting to have a new life. You can also buy a new phone if you wish. Get a phone you like, and then make it last as long as possible to keep your costs low. Personally I enjoy having used phones because I worry about them a lot less.
Once you find a phone, first contact your current or prospective carrier and verify that your phone will work. You can usually test this on their website. Join up and port over your cell phone number.
Q: Can I keep my cell phone number?
A: Yes.
Q: What provider does Midlife Maestro use?
A: Currently we are on Tello* which utilizes the Sprint network. But there are many other great carriers to choose from:
Total Wireless
T-Mobile Connect
Mint Mobile
Ting
*Midlife Maestro receives a credit from Tello for referrals
