AARP Hearing Center
7 Ways to Lower Your Cellphone Bill
Save big by switching carriers, ditching unnecessary perks, taking advantage of discounts and using other strategies
6-minute read
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Key takeaways
- Switching from a major carrier to a smaller provider can offer comparable network service at a lower price.
- Review your bill for unused add-ons, excessive data and duplicate insurance.
- Discounts for adults 55 and older and automatic payments can reduce monthly costs.
If it feels like your cellphone bill keeps rising, you’re not imagining things. The cost of wireless service jumped nearly 6 percent from July to August, according to Consumer Price Index data. It’s the largest single-month increase ever recorded by the Bureau of Labor Statistics.
For retirees on a fixed income, soaring cellphone bills can put extra pressure on already-stretched budgets. But before you resign yourself to paying more for your wireless plan, be aware that you may have more control over this cost than you might think.
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Here are seven ways to cut your cellphone bill without sacrificing the service you need.
Consider switching to a smaller carrier
One way to reduce your cellphone bill if you get service from one of the major wireless providers — AT&T, T-Mobile or Verizon — is to switch to a mobile virtual network operator (MVNO), says Max McCaskill, a senior staff writer at WhistleOut, a phone and internet service comparison platform. These smaller providers operate on the big carriers’ networks. In fact, some are owned by the big three network operators.
“Since they operate on the exact same networks and a lot of them have large data plans, when you switch you’re still going to have great service,” McCaskill says. “Because they’re not having to pay for the infrastructure and don’t offer a ton of extra perks, the plan is a lot cheaper.”
For example, Mint Mobile charges $30 a month for a single line with unlimited data, while T-Mobile — which owns Mint Mobile — charges $55 a month for its lowest-priced plan for a single line with unlimited data (though T-Mobile does offer a $5 monthly discount for auto-pay).
There are potential drawbacks to leaving a major carrier. MVNOs typically operate as prepaid plans and might require an upfront payment for several months or a year of service. Also, when network traffic is heavy, the major carriers may slow down data speeds for MVNO customers. However, if you’re on a major carrier’s lowest-priced plan, you might also experience data slowdowns during periods of network congestion, McCaskill says.
Shop for a cheaper plan
It’s always a good idea to shop around to see if you can get a better deal on wireless service. The best time of year to do this is in the fall, when new smartphone models are released, says Thad Hwang, founder and CEO of Goji Mobile, an online marketplace for comparing wireless phone plans. That’s because wireless carriers offer promotional pricing to get phone buyers to switch to their plans. Back-to-school phone shopping also spurs deals on service plans, he says.
Even if you aren’t buying a new phone, you can capitalize on wireless deals in the fall. Consumers who compare plans and switch providers can save up to $100 a month or more, Hwang says. You can use a wireless plan comparison website such as Goji, WhistleOut or Navi to find the best rate for the service you need.
Prefer to stay with your provider? Threaten to leave
If you want to try to negotiate a lower rate with your carrier, call customer service and tell the agent that you want to cancel your service, says Brian Keaney, cofounder at Billshark, a bill-negotiating service. You’ll likely be transferred to the retention department. “Their main job is to make sure you don’t switch,” he says. “Retention has offers they can give you.”
The best time to call customer service is on a Tuesday or Wednesday morning, when wait times are typically shorter, Keaney says.
Review your bill to find opportunities for savings
The three big wireless providers often pitch customers expensive higher-tier plans with services or add-ons that they may not need, Keaney says. He recommends combing through your bill to identify add-ons you aren’t using, like streaming services, and calling to cancel them.
You might also be paying extra for unnecessary insurance. Some iPhone owners, for example, pay for insurance they don’t need from their wireless provider because they already have coverage through Apple’s AppleCare program, Keaney says.
You also could be overpaying if you’re on the same plan you’ve had for years. Before he launched Billshark, Keaney says he had never checked whether his provider offered cheaper plans than the one he originally chose 25 years ago. Once he did, he says he discovered the company was offering “new plans that were better and cheaper.” He saved $1,300 a year by switching to one of them.
Take advantage of senior (and other) discounts
You may qualify for a senior discount from a wireless provider at a younger age than you might think. “The magic number is 55,” Hwang says.
Adults 55 and older are eligible for a single line on T-Mobile’s lowest-priced plan for $45 a month or two lines for $60 a month, compared to $60 for a single line and $90 for two lines under the company’s standard rates. AT&T customers 55 and older can get two wireless lines and internet service for $99 a month — a savings of $550 annually. Verizon customers 55 or older residing in Florida can get one line for $45 a month, a monthly savings of $20, or two lines for $80 a month, a monthly savings of $30.
Veterans or members of the military may be entitled to discounts. Some providers also offer lower rates to members of certain groups, Keaney says. For example, AARP members can get two lines with unlimited data for $55 a month from Consumer Cellular.
Don’t forget to sign up for automatic bill payments, which typically results in savings of $5 to $10 a month, Keaney says.
Lifeline, a federal program, provides a monthly discount of up to $9.25 off cellphone, internet or bundled service if you meet certain income qualifications or participate in government assistance programs such as Medicaid or Supplemental Nutrition Assistance Program (SNAP).
Opt for less data
Most wireless providers offer plans with unlimited cellular data, which means you can use your phone to browse the web and stream music and videos as much as you want. However, many consumers don’t need unlimited data, McCaskill says, especially those who are accessing the internet through Wi-Fi at home or at work, rather than with cellular data.
Review your cellphone bill or check your account online to see how much data you’re using each month. “If you’re paying for unlimited premium data but you’re only using 15 gigabytes of data per month … you are paying way too much for data,” McCaskill says.
If you have a family plan and some members of your household use less data than others, see if your provider offers the option to pay for different levels of data or tiers of service for each line, rather than shelling out for unlimited data for everyone. Keaney uses this strategy, paying for a plan with unlimited data and other features for his line, while keeping his kids on his provider’s lowest-tier offering.
Keep your phone longer
Upgrading to the newest smartphone model might be tempting, but it won’t do your cellphone bill any favors. For example, Apple’s new smartphone — the iPhone Duo — is its most expensive model yet, starting at $2,000. You might be tempted to buy one right away, but sticking with your current phone a bit longer could save you a lot of money.
McCaskill says most cellphone owners keep their device for about three years, which is the typical length of the major wireless providers’ installment plans. But he recommends hanging onto your phone for at least four years. “If you can keep your device for more than three years, after the installment fees are paid off, your bill will immediately drop,” he says.
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