Saving on Cell Service


Oh, smart phones are so cool, but the monthly bill can make you want to scream.

 But there is a way you can cut that bill and save a couple of hundred bucks a year.

 I thought that might get your attention.

 Instead of using one of the major cell phone providers, try using a company that uses the same networks, but at a fraction of the price.

 They’re called MVNO’s, or Mobile Virtual Network Operators. Just Google that phrase, and you’ll find a list of providers, which cellular network they use, and their rates.

 You sign up month to month, so there’s no long term contract.  You’re using the same cellular networks, just at a lower price.

 There is a small catch though.  You’ll need to buy a phone if you don’t already have one that’s unlocked.  Unlocked means your cellular company releases their control over the device because you’re not under contract to them anymore.

 Let’s say you want the latest and greatest iPhone. If you went to the nation’s top wireless provider, you’d pay $300 for one, and then $80 a month for service and be locked in to a two year contract.   That’s a total cost of $2220 over the two years. (Update: Since this article was written, the "top provider" has discontinued contracts.)

Instead, buy the phone directly from Apple for $750.  I know, we’ll talk about knocking that down to size in a bit. 

Then go to a top MVNO and get comparable service for just $45 a month.  In 2 years, you’ll have spent only $1830, so you’ve saved nearly $400.

But here’s how you can save even more.  Imagine, just imagine, you didn’t have to have the LATEST model phone.

People have done it and survived.   

You can find an iPhone 5, for example, for around $200.  How much have you saved doing that?

Over two years, you’ll save nearly a thousand dollars buying a slightly out of date phone and getting service from an MVNO, compared to if you’d gone with the gigantic provider.

So consider some low cost alternatives to help you get out from under that giant phone bill.

Do us a favor. Subscribe to our blog, and tell your friends about us so they can be smarter about their money too.



Meet the blogger