The Costs of Cell Phone Service

Many older adults overpay for their cell phone plans simply because they’re not aware of their options. That can be an expensive oversight.

Major service providers offer contract plans starting at around $75 per month for a single phone. While adding additional phones can bring down the cost per line, it’s still an enormous monthly expense. Additionally, cell phone providers sometimes use complicated terminology to describe their plans, which can discourage seniors from researching the competition.

The good news: Smaller providers offer rock-bottom rates that undercut the major providers by 50 percent or more. The big-name providers know about their competition, and they’ve responded by offering their own low-cost plans to consumers who are savvy enough to find them.

What to Know When Comparing Cell Phone Plans

Older adults simply want to find good, reliable cell phone service — but that can mean different things depending on how you use your phone and what you expect from your cell phone plan. Some factors to consider while comparing options:

Coverage- Most carriers have coverage maps that show the quality of their connections across the country. Make sure your cell plan will give you a decent connection; an inexpensive plan might seem like a bargain, but if you have to leave your house every time you want to make a phone call, you’ll wish you’d paid more.

If you can’t find coverage maps, look for independent online resources that test different carriers. When in doubt, ask friends and family about the quality of their coverage.

Data Limits- Data limits can be confusing for all consumers, not just seniors. If you use your smartphone regularly, you might need a plan that offers a high data limit. However, if you use the internet infrequently (or if you’re always connected to your home’s WiFi when you browse the web), you may be able to save by opting for a lower limit.

Find out how much data you use by contacting your current provider and asking for a report. Remember, if you’re upgrading to a faster plan, you might use more data, so take that into consideration when making your decision.

Smart Phone Packages and Other Incentives- Many cell providers will offer hefty discounts on brand-new smartphones. Several also offer entertainment packages with free subscriptions to Hulu, HBO, Netflix, or other online streaming services. These incentives can be worth hundreds of dollars, but an expensive phone plan can quickly eat away at those savings.

Decide whether these incentives are necessary — if you don’t mind using a slightly older phone, you might be able to cut your bill by taking your old device to a new plan. Likewise, if you don’t plan on using bundled streaming services, there’s no reason to consider them when comparing plans.

Contract Length- Find out how long you’ll be tethered to your phone company and whether there are any penalties for early cancellation. Most carriers offer a grace period of around 14 days for cancellations, so if you’re unsatisfied with your service after a few days, you might be able to cancel without any penalty.

To evaluate these factors, you’ll need to look closely at every option. Read offers carefully, paying attention to the small print.

Research Online Before Signing a Contract

A cell phone plan can be a major purchase, and seniors have dozens of options to choose from. If you can’t find a long-term contract that works for your needs, consider pay-as-you-go plans. Many major service providers offer these types of plans, which typically feature simple terms, low monthly prices, and the option to upgrade when necessary.

While researching, be sure to consider lesser-known telecommunications companies. These often use the same coverage networks as the major players, so you’ll enjoy great service at a lower price point.

Even if you’re happy with your current provider, a quick online search might help you find a better deal. If you find better pricing from a competitor, you may even be able to negotiate your rates — provided that you keep documentation of your research.

With a little work, you can find dependable coverage without overspending. Know your usage habits, look into at least 3-4 providers, and you’ll be able to sign up for your next plan with confidence.