5 ways to save on your cellphone bill

Verizon has joined other major carriers in no longer offering unlimited data plans to new customers. So how can you keep your costs down?

By Stacy Johnson Jul 8, 2011 4:32PM

This post comes from Ross Boissoneau at partner site Money Talks News.

This week marked the end of an era is cellphones: Verizon joined AT&T and T-Mobile in dumping its popular unlimited data plan. That leaves Sprint as the only major wireless provider still offering one-price-for-all-you-can-consume data. And who knows how long it'll be before Sprint follows suit.

Now, new Verizon customers will have to sign up for what's called a usage-based data plan. (Existing customers are grandfathered in, but Verizon hasn't announced what will happen when those contracts expire. Most likely, they'll have to go usage-based too.)

So instead of one price for all data, Verizon is charging $10 for 75 MB per month, $30 for 2 GB per month, $50 for 5 GB per month, and $80 for 10 GB per month. (For more details, PC Magazine has a really great Q&A.)

Even if you're not affected by this move, it's a good reminder to check your own usage and your bill for any potential savings. Here are five ways to save money on your cellphone bill.

Pay attention to where and when you use your phone. You probably already know that many plans offer reduced rates if you talk or text at different times and on different days. And you should know to watch out for roaming charges. But here's something you may not be aware of: It's not where you roam, but where your carrier sends the signal.

For example, on a trip to Sault Ste. Marie, Mich., last year, my eagle-eyed son reminded me to avoid using my cellphone for email or Internet because we'd get charged as if we were in Canada, since that's where the closest tower was. Post continues after video.

Look at how you use your phone. Think less about cost per minute or per text and more about cost per month. If you live on your cellphone and have dropped your land line, then you might need a plan that lets you talk, text, and check sports scores on an unlimited basis -- and that just leaves you with Sprint among the big providers. But if you just have your phone for emergencies, then look at a prepaid plan.

Shop around and you could spend as little as $20 every three months. Best of all, since you don't have a contract commitment, if you don't like the model or your reception isn't up to your standards, you can try a different one when your minutes and time run out.

Use a land line for local calls. This might seem counterintuitive, but if you haven't ditched your land line, use it for your local calls. Most wired phone plans charge a flat fee for local calls, and if you don't use your cell, those are minutes saved at no additional cost. You can do the same at work, although some employers obviously frown on using company phones for personal use.

Eliminate unnecessary frills. Sure, you might really use text messaging, but what about roadside assistance or equipment protection? Many carriers offer roadside assistance for only $3 or $4 a month, which means your carrier will come to your rescue if you have car trouble and, say, tow your car to the nearest service station. They also offer equipment protection for about $5 a month. Truth is, those additional costs quickly add up.

Equipment protection sounds fairly reasonable, but unless you destroy the latest and greatest smartphone shortly after you get it, by the time you wreck or lose it you'll probably have already paid for it in monthly fees and the deductible. In my case, an accident with my iPhone (it intersected with gravity and met my kitchen floor face-first) resulted in simply extending my plan another year -- which I would have done anyway -- and getting a brand new iPhone 3G for only $50.

And roadside assistance? Look to your auto insurance or motor club membership, or even a premium credit card. You don't want to pay for something you already have or can get cheaper elsewhere.

Ask and ye shall receive. Say you have a plan that doesn't include texting because you figure you'll never use text messaging. Then you start getting texts from your friends. Or from work. Next thing you know, you're texting back. Then you get your next bill and find you're being charged $50 extra just for those couple of texts -- OK, those 23 texts -- you sent.

Yes, this happened to me. And when I went into my local AT&T office, the folks there quickly offered to switch me to a new plan including text for only an additional $10 per month, saving me $40 from that bill. Great customer relations.

That's just one example. And you can be sure of one thing: Your service provider doesn't want to lose you to a competitor. So ask about better deals. Don't threaten to switch, at least not at first, but it doesn't hurt to tell your service rep that a competitor is offering you a better plan. Chances are they'll do whatever it takes to keep you.

More on Money Talks News and MSN Money:

Tags:

billscell phonesconsumer guideMoneyTalks Newssavings

< Back to Smart Spending

5Comments

Best

Jul 9, 2011 6:05AM

Here's a better idea..DUMP the stupid, waste of money cell phone altogether..I dumped my blackberry 5 weeks ago and have not even missed it..If anybody wants me, they can do it the old fashioned way and call my $25/ month landline. We grew up without the stupid cell phone and got along just fine. My wife got rid of her blackberry and got a not frills straight talk at WalMart and is doing just fine.. 2 Blackberrys, unlimited everything = $172/month....1 Straighttalk, unlimited everything = $30/month..NICE savings of $142/month and haven't missed anything important.

Previous replies

Someone

Jul 8, 2011 6:40PM

You can also download mobile apps like the app from smart mouth mobile that lets you have unlimited calling and texting.

Previous replies

Jaroffruit

Jul 11, 2011 4:05PM

eya Randy922, tracfone's straight talk brand's unlimited everything plan is $45, not 30. Still it's a massive saving from the two blackberries....if you didn't need them. Sometimes I also think carrying a cellphone is a curse, but without there won't be food on the table. Just as well that there's a cheaper alternate wireless solution like ST, that does afford for at least more food on the table.

Previous replies

The Hey Day

Jul 10, 2011 8:53PM

Had AT&T for years and giving them $65/75 month for 450min plan. Paying for texting both in and out. Dropped them for Net10 prepaid 750 minutes of any type of usage for just $25.00! Saving over $500/year and still have great cell service from Net10, which is using AT&T and T-Mobile cell site service in my area.

Previous replies

Santo_Nino

Aug 8, 2012 3:47PM

randy, that is your STUPID OPTION. not everyone has the option on using your agent old fashion way land line. For example. while traveling, Hotels charge a mid for making a call, sometimes even local calls. therefore, I pay $62 for 550 minutes, anywhere in the 50 States. free after hours. therefore, I can used my cell phone almost everywhere, obviously just avoid using your cell phone while traveling in Canada, which you need a Pass-Port.

Previous replies

DATA PROVIDERS

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. 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 SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

Feedback

ABOUT SMART SPENDING

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.