There are other ways around the gates.
Nineteen days ago, AT&T Wireless, with little fanfare, put the final nail in the coffin of metered voice and text plans. The company has made its “Mobile Share” plans the only option for new post-paid customers, killing off all plans that did not include shared data. “Our customers have expressed an overwhelming preference for simplified options that allow them to share data across multiple devices,” the company says in a blog on its corporate page, claiming that they are “simplifying” the selection of plans for new customers.
There’s simplicity at work, but it’s not for the benefit of AT&T Wireless’ 109 million subscribers. Like other cellular phone companies, AT&T’s cellular business measures the amount of money made from any given customer using a metric they call “Average Service Revenue Per User” or ARPU. Since they believe that the well for charging for texts and minutes (including overages) has run dry, they’ve since focused on data. Since January 2013, ARPU grew 16.6 percent on the sales of data plans and smartphones according to the company’s last quarterly statement. The company’s quarterly operating revenue was $32 billion.
Under the Mobile Share plans, a basic phone will cost $50 a month, and a smartphone will cost $70, both including 300MB of data with unlimited texts and minutes. Each additional basic phone costs $30, and additional smartphones will run $40 each on top of the first data pile. Before this, an individual subscriber could purchase a Nation 450 plan for $40, with no data required. So what’s a savvy consumer to do?
There’s always the option of taking your business elsewhere. Unfortunately, this option isn’t for everyone, as network coverage by the “Big Four” networks (Verizon, AT&T, Sprint and T-Mobile) may vary from place to place. I recall the example of a good friend, who found that his T-Mobile hardware was not welcome in central Texas, which is AT&T country, and had to make the switch with some teeth-gnashing due to higher pricing. But there is hope for the frugal. If you need to be on AT&T’s network but don’t want to pay their higher prices, it just so happens there are ways to stay on their network and pay only for what you need.
Enter the Mobile Virtual Network Operator, or MVNO. In short, MVNOs are companies that purchase network access from the larger networks and resells it to the retail market. Higher profile MVNOs you might have seen on TV include Boost Mobile or Virgin Mobile, both of which actually run on Sprint. The larger networks deal with a slew of MVNOs, highlighted in this useful Wikipedia article.
Since AT&T has discontinued their talk and text-only plans, I’m looking at four companies that offer cheaper plans on their network. All are pre-paid, and you can usually bring your own unlocked AT&T-compatible phone to use without a problem. Since these companies do not own the networks that they use, their monthly bills are usually absent of any taxes or usage fees, which means more money in your pocket. (As always, tax laws in your area may differ. Be smart and look them up.)
Note: These companies are listed for educational purposes only, and are not endorsements. I do not profit from these links.
Air Voice Wireless might offer one of the best values for those who don’t need unlimited everything. For $10 a month, the math works out to exclusively 250 minutes, 500 texts or a little over 150MB of data. For the light user, it’s hard to argue with $10 a month. If you need more, they offer pay-as-you-go options, in addition to their own unlimited talk text and data plans, which offer up to 3GB of data for $60, which gets you 2.7GB more for $10 less than AT&T.
PureTALK GSM is based out of Georgia, and has an even cheaper voice only plan. For $5 a month, you get 50 minutes. Other plans resemble Air Voices, including $35 a month for unlimited talk, 400 text messages and 100MB of data. When researching the company, it appears that they sell their own phones, but some claim that those phones are all refurbished. It might be wise to bring your own phone. In the interest of full disclosure, I have a family member that uses the $5 plan.
If you’re looking for data too, you can still get that cheaper from the resellers.
Straight Talk is owned by TracFone Wireless, which in turned is owned by Mexico’s largest phone company, Teléfonos de México. The brand exists alongside the Simple Mobile, TracFone and NET10 brands, among others. Straight Talk operates across both AT&T and T-Mobile, but their AT&T deal is currently one of the better MVNO options on the market. Upon ordering a SIM for $7 from their website, you can get a plan with unlimited talk, text and data for $45 a month. That’s no typo regarding data. Instead of AT&T’s plans that include overage charges, ST slows down the speed of your connection after you go through 2.5GB.
Aio Wireless is a relatively new MVNO created by AT&T in order to win back the subscribers they lost to other providers. In spite of being owned by AT&T, Aio’s plans and prices are far better than their parent corporation. Starting at $40 for basic phones, you get unlimited talk, text and data, with data speed slowed after using 250MB (more full disclosure: I use this plan for work). If you need more data, or have a smartphone, you can opt for the $55 plan that offers 2GB of data before slowing down. Aio has opened a few locations throughout the nation, but their service may be available to activate online.
There are a few cautionary notes to share regarding MVNOs, however.
- Customer service will vary between providers, and ranges from full customer service support to automated emails.
- AT&T can adjust their pricing and wholesale allotment, which may impact your service. In this case, since many MVNOs are month-to-month, you have the option to jump ship if need be.
- Most, if not all of these MVNOs may require you to bring your own GSM phone. Make sure that your phone is compatible with AT&T’s network and unlocked before ordering.
- AIO ONLY: AT&T is in the process of completing the purchase of Leap Wireless for $1.2 billion. Leap owns the Cricket Wireless brand, which is a pre-paid brand like Aio, but with differing technologies (Cricket uses a CDMA network. Aio uses GSM). AT&T has made no statements as to the future of Cricket or Aio, or if they will continue to exist as distinct or integrated businesses. We’ll just have to wait and see.
If you have any MVNO experiences, great or sour, feel free to leave them in the comments.