Smart SpendingSmart Spending

New unlimited data plans: Should you bite?

Either way, experts say consumers shouldn't count on unlimited data for an unlimited time.

By MSN Money Partner Aug 24, 2012 1:08PM

This post comes from Kelli B. Grant at partner site SmartMoney.


SmartMoney on MSN MoneyWhat would you do for unlimited smartphone data? Smaller carriers are betting consumers will ditch their current providers. But experts say doing so might not be such a smart idea.


Image: Piggy bank (© Corbis)The nation's fourth- and fifth-largest carriers, T-Mobile and MetroPCS, announced changes to their unlimited data offerings this week. MetroPCS will temporarily cut prices for its unlimited talk, text and data plan from $70 a month to $55, while, as of Sept. 5, T-Mobile will reintroduce unlimited data plans. (Currently, T-Mobile subscribers can buy an unlimited plan for $20 to $30 per month, but they get kicked to a slower connection after they surpass 2GB of usage each month. Those who sign up for the new plan won't have that limit.)


Carriers are hoping to attract new customers as data use increases and other providers cut their plan limits, says Andrew Eisner, director of content for "All the cool things smartphones do tend to take up a lot of data," he says. (Post continues below.)

AT&T and Verizon both have eliminated their unlimited plans for new customers, and as we've previously reported, they have also taken steps in recent months to reduce the number of users who are hanging on to the old unlimited offerings. Meanwhile, Sprint -- the only other big carrier to offer unlimited data plans -- has cited the plans as key to drawing in new customers.


But unlimited data may not be worth pursuing. "Changing providers is like refinancing your house," says technology consultant Alex Goldfayn. "It's that complex, and not something people take on lightly." Before switching, gauge signal quality and connection speed in your area. Early-termination fees are another consideration: Unless you're at the end of a contract, fees for leaving can top $350, depending on your phone and how many months you have left.

Still want to switch? Consider waiting until at least early September, Goldfayn says. That's when Apple is likely to introduce a new iPhone, and whether T-Mobile or MetroPCS gets to sell it could make these new unlimited offerings more or less attractive.


Either way, experts say consumers shouldn't count on unlimited data for an unlimited time. "It's only going to get more restricted," Eisner says. "Carriers are afraid of overloading their infrastructure with data-hungry applications."


More on SmartMoney and MSN Money:

Aug 24, 2012 3:48PM
absolutely terrible... These companies want to lure in a consumer with these "wonderful devices" and "all the things they can do" ...

But oh wait... you're totally limited in what you can ACTUALLY do because these carriers fail to invest in additional infrastructure to accommodate the demand in capacity.

Absolutely unacceptable...Europe doesn't have this problem; unfortunately this is what happens when publicly traded companies have zero incentive to improve their product or service
Aug 26, 2012 8:26PM
We can land a complete science lab on Mars but can't deal with upgrading infrastructure for communications.  There are 3rd world countries that do a better job making everyday technology work for people.  We want progress but guess the companies are more concerned with profit.
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


Smart Spending brings you the best money-saving tips from MSN Money and the rest of the Web. Join the conversation on Facebook and follow us on Twitter.