Should You Switch to a Budget Wireless Carrier?

42 4 minutes read

If you’re tired of paying large wireless bills each month, you might consider changing to a budget wireless carrier. These carriers offer affordable plans starting around just $15 per month, and they’re often appealing alternatives to traditional wireless plans.

According to J.D. Power, the average wireless monthly price was $141 in 2024, so you could cut your phone bill if you switch to a budget wireless carrier.

Most budget carriers, known as mobile virtual network operators (MVNOs), lease network access from major providers like Verizon, AT&T, or T-Mobile, meaning you’ll often get the same coverage. However, these low-cost plans may come with trade-offs.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of expert advice – straight to your e-mail.

Before you make the change, here’s what you need to know about these options.

What are budget wireless carriers and how do they work?

Budget carriers offer simple plans at low prices, and they’re able to offer those lower prices because they don’t own their wireless networks. Instead, these companies lease coverage from major networks like Verizon, AT&T and T-Mobile. MVNOs often lease coverage from multiple networks, which allows them to provide strong signals and speeds to customers in many locations.

Though MVNOs get the same speeds as customers who have plans directly with Verizon, AT&T and T-Mobile, those networks’ direct customers will receive priority over MVNO customers.

For example, at peak usage times, a Verizon customer will be prioritized and will receive top speeds, while an MVNO customer using the Verizon network may experience reduced speeds.

MVNOs offer cheaper plans than what you’ll find from major networks, and those plans have fewer frills. Many plans limit data usage and cap speeds on data. When buying an MVNO plan, you may only be able to choose from a few phones, while customers buying directly from a large network will have a wider range of phones.

At the same time, MVNOs can be an appealing choice if you’re looking to save money on your cell phone bill. Most MVNOs require no contract, so you can pay monthly and cancel your service anytime without cancellation fees.

There are many MVNOs available today. Some of the most popular include:

Mint Mobile
Cricket Wireless
Consumer Coverage
Metro by T-Mobile
Boost Mobile
Xfinity Mobile
Spectrum Mobile
Straight Talk
FreedomPop

Now, Trump Mobile is joining the lineup of MVNOs. But is Trump Mobile a wise choice?

What Trump Mobile is promising

The newly announced Trump Mobile plan costs $47.45 per month and includes unlimited talk, text and data. International calling is available to 100 destinations, and there’s no credit check required to buy a plan. Since there’s no contract, you can cancel your service at any time.

According to the Trump Mobile website, the service works with most major phones, so you may be able to use your current device. Preorders of the T1 Phone are also available; the phone costs $499 and will be available in September 2025. The website states that the T1 Phone will be made in America.

Potential Trump Mobile drawbacks

While the prospect of a $499 smartphone and an affordable plan sounds appealing, there are potential red flags to be aware of. Essential plan details are missing, including the networks that Trump Mobile uses.

The terms of use page states that the service is “powered by Liberty Mobile Wireless LLC.” Trump Mobile doesn’t specify whether customers will receive 4G LTE or 5G speeds, and the exact coverage really isn’t defined.

The plan website states that international calling is available to 100 destinations, but when you read the fine print, you’ll find that time caps – some as low as 10 minutes – apply to most of those destinations.

There’s question about whether the T1 phone will actually be made in America as the website states. According to Newsweek, a phone made in the United States would probably cost over $1,000, double the T1’s cost, since smartphone technology largely relies on international supply chains.

If you’re thinking of signing up, take a few minutes to review the Trump Mobile privacy policy so you’re familiar with its terms. According to the policy, Trump Mobile’s AI systems can collect data, including the pages you visit, links you click on, your IP address and location information.

How to evaluate if a switch to a budget wireless carrier makes sense

(Image credit: Getty Images)

MVNOs are appealing because of their low costs, and they may make financial sense for some individuals who don’t heavily use data or need premium speeds. But before you plan to switch, review your phone usage and ask yourself the following questions:

Are you paying for data you don’t use? Data plans can quickly drive up your wireless bill. If you have large portions of unused data left over each month, you might be able to save by choosing a budget plan with a lower data limit.
Do you need premium speeds or in-person customer support? If you need reliably fast speeds, a budget carrier might not be the best choice, since you could experience lower speeds during peak times. Some budget carriers offer limited or no in-person customer support, so consider the availability of that support when choosing a carrier.
Is your current carrier offering loyalty perks? Review your current wireless statement and see if you’re getting any loyalty perks, like discounts on your bills or exclusive offers. If you leave your current carrier and then decide to go back to them in the future, you’ll have to re-qualify for those perks.

Bottom line

You may see substantial savings when you choose a budget wireless carrier, but these services aren’t the right fit for everyone. Thoroughly research any carrier that you’re considering and make sure that the speeds, coverage and services will all meet your needs before you make the switch.

Source link