Tips on finding the best cell phone plan and checking coverage.      Includes the MyRatePlan cell phone rate plan comparison tool.

From:  WWLP 22 News, Springfield, MA

Straight Talk, a no-contract service that offers two of the cheapest cell phone plans currently available, announced this week that they have expanded their service to include the AT&T network.  Previously, Straight Talk was exclusively running across the Verizon Wireless network.   This change will expand the number of locations where Straight Talk is available, as there some locations not yet covered by Verizon.

If both AT&T and Verizon are available where  you live, the network you use with Straight Talk will be dependent on the phone you choose.   AT&T works on GSM technology, while Verizon uses CDMA, and the technology is not compatible.

How to Choose a Network

If you live in an area served by both carriers, the Straight Talk website will offer you phones from both carriers. However, if  you know Verizon (or AT&T) has better coverage where you live, you will probably want to get a phone that works on the better network.

While not explicitly providing this information on their website, Straight Talk has made it easy to tell.   Just look at the letter code at the end of the phone model.  If it is a “G”, it is a GSM phone and will work over AT&T; if a “C” it is a CDMA phone and will work over Verizon.   For example, the LG100C is a CDMA phone, while the LG620G is a GSM phone.

Straight Talk Plans

As mentioned earlier, Straight Talk has a couple very attractive rate plans, particularly if you are a fairly heavy voice user and also want to use text and data.   For $30 a month, you get 1,000 voice minutes, 1,000 text messages and 30mb. of data.  For $45/month, you get an unlimited allowance of all.  Both plans include calls to 411 at no extra cost.

To make sure Straight Talk is best for you, compare it to other prepaid and no contract cell phone plans.

In a move that will eventually be copied (in some form) by other wireless (and possibly home broadband) providers, AT&T has moved to a tiered, usage-based data pricing for its smartphone devices.

The previous smartphone/iPhone/BlackBerry data plan, at $30 month, was for unlimited usage.   Going forward (current customers are not required to switch), purchasers of the will be able to choose a 200 MB DataPlus plan for $15/month or 2 GB for $25/month.   Those on the lower-priced plan who exceed their bucket will be charged $15 for an additional 200 MB.  Those exceeding the bucket on the higher plan will receive an additional 1 GB of data for $10. All plans include unlimited AT&T Hot Spot access on Wi-Fi capable devices.

MyRatePlan Comments

• For light users of data (emails with no attachments, web browsing), there is an opportunity to save up to 50% on the prior cost of smartphone data.   (AT&T claims 65% of its smartphone subscribers fall into this category).   Since all other national carriers have a required smartphone data plan of about $30, AT&T may have an opportunity to poach some of those customers
• At the same time, by grandfathering in existing customers with the unlimited plan, AT&T reduces the risk that those people will defect.   It is unclear if/when Verizon or another carrier will have the Apple iPhone, but this move may help AT&T retain those customers when the phone does become more widely.
• The overage pricing structure somewhat discourages taking the 200 MB plan, as the monthly cost doubles if that is exceeded.   It is also somewhat punitive that any excess doesn’t roll over to subsequent months, as AT&T does with its Rollover voice minutes.  If a user ends up going over their allowance two days before the end of the billing cycle, they will still be charged $15 even though it is unlikely they will utilized much of that data.
• For the heaviest 2% of users (those that AT&T says exceed 2 GB usage per month), the price for data will increase, perhaps sharply.   For example, someone that uses between 5 and 6 GB per month, will now pay $65, more than 100% increase.  As we mentioned earlier, existing smartphone customers can keep their unlimited $30 plan, so initially this will impact a small number of people.  In fact, this may be a tacit effort to get prospective new customers who would tax their network to go somewhere else.  At some point, when AT&T’s network fully catches up to the exponential use of data, we would expect the carrier to introduce at least one new high allowance tier, to be perceived as more welcoming to heavier users.
• The other quirky thing about the new data pricing is that AT&T is now the only carrier where a smartphone rate plan can be cheaper than a quick messaging phone rate plan.   AT&T voice rate plans start at $39.99, making the lowest monthly cost on a smartphone plan $54.99 ($39.99 + $15 data plan).  However, that minimum cost is $59.99 for quick messaging plans, as those require at least $20 of some combination of messaging and non-smartphone data plans.   Given how profitable text messaging is for carriers, this non-competitive high minimum monthly cost (vs. other carriers) in this category is somewhat surprising.

**Update June 1:   The list of advanced devices that incur the higher $325 termination fee has now been published by AT&T.

According to Digital Daily, AT&T is increasing the termination fee on smartphones, including the Apple iPhone to $325, from $175, effective June 1.     This change is similar to one Verizon made last fall, when it doubled the termination fee on its lineup of smartphones.

AT&T termination fees currently decline by $5 per month from the $175 starting point.  For the new $325 termination fee, the decline will be $10 per month.

Curious how they decided $325 was the right number instead of matching Verizon’s $350 (since their termination fee schedules are otherwise identical).  Of all the considerations that go into someone choosing Verizon vs. AT&T, it is hard to imagine that a $25 lower termination fee — that is still over $300 — would be one of them.

By the way, if you’re under contract and curious what your termination fee would be, try our termination fee calculator.

Update: As part of the pricing changes, AT&T is actually decreasing the early termination fee on non-smartphones (feature and messaging phones) by $25 to $150.   The prorated reduction each month will be $4, instead of $5.   All the changes apply to contracts created on or after June 1.

For those in the market for a family plan today, T-Mobile is waiving activation fees on 2 or more lines.    Unfortunately this offer is for today only.

AT&T is also waiving activation fees through the rest of May.  That’s a savings of $36 on one line and up to $150 on a five line family plan.  (As of now (5/10), this includes the iPhone.  However, we’re not sure if AT&T is including the iPhone in the program all the way through May.

To compare all cell phone plans, and find the one that will cost you the least each month based on how you use your phone, visit our CellCalc page.

We’ve created a new tool to let consumers calculate the termination fee associated with their cell phone contract. The calculator takes into account variables such as contract period, carrier and device type to customize an answer specific to each person’s situation. You can try out the early termination fee calculator on the site or see the termination fee schedules of all four national carriers. Alternately, you can try out the widget below or grab the code and embed it on your site or blog.

Code:
<script type=”text/javascript” src=”http://www.myrateplan.com/contract_termination_fees/widget/widget.js”></script>

Verizon has apparently reduced the number of phones subject to the $350 early termination fee for advanced devices.     This termination fee, double the standard $175, was added for new contracts and renewals associated with these devices as of November 15, 2009.   The current list appears to be limited to smartphones (including BlackBerry and Android devices) and netbooks.   A review of a prior version of the schedule showed that as of last Friday this list contained a number of multimedia devices such as the LG enV Touch and Samsung Rogue.

MyRatePlan Analysis: If there is justification for a higher early termination fee, this new shorter list of devices makes more sense.   Verizon has been taking some political heat for the higher termination fees.  In their response to an FCC inquiry last month, Verizon talked at length about the large amount of subsidy below cost  for these devices (vs. other phones), saying that this amount alone justified the higher early termination fee.     Some of the devices removed likely cost Verizon quite a bit less than true smartphones.   In addition, Verizon has introduced new pricing this week requiring a data plan of at least $9.99/month on several of the removed devices.   It is possible that the incremental revenue associated with this new pricing structure also led to the pullback in what is considered an ‘advanced device’.

On a related note, check out our new termination fee calculator.

AT&T and Verizon have lowered their unlimited pricing to $69.99/month, $89.99 for unlimited voice & text, $99.99 for unlimited voice, text and data.   Similar decreases are also in effect on the family plan side, where two unlimited lines are $119.99 vs. the previous $199.99.   This is a decrease of about 30% for a single line, 40% for a family plan. Verizon also reduced its 2,100 minute plan to 2,000 minutes, and cut the price by $10.  The carriers are allowing customers to change to these rate plans with no penalty or contract extension.

• If your rate plan is more than the above amounts, contact the carrier directly to switch, subject to the exceptions in the list below.   For customers who have gotten a rate plan in the last couple years, most people on a 1,350 minute or unlimited single line plan will benefit, as will most on a family plan higher than 2,100 minutes.  Verizon customers on a 2,100 minute plan who don’t use more than 2,000 minutes can save $10 a month by switching to the 2,000 minute family plan.

1. If your carrier is AT&T and your phone is a ‘quick messaging’ device (basically a non-smartphone with a QWERTY keyboard) and you do not currently have text and/or data bundle, AT&T may make you add some combination of these these that totals $20 or more per month ($30 for a family plan).   That would reduce or eliminate your savings.
2. If your carrier is Verizon and your phone is a 3G multimedia device (currrently LG enV Touch, Samsung Rogue, LG Chocolate Touch, LG enV3, LG VX8360, Motorola Entice, Nokia Twist, Samsung Alias 2), and you do not currently have a data plan, Verizon may make you add a $9.99 data plan (for each of these phones on the plan).  That would reduce or eliminate your savings.
3. If you are in the final two months of your contract or your contract is over, MyRatePlan can help you get a substantially discounted phone if you renew your contract online.    This is regardless of the rate plan you are currently on, but is subject to the requirements above.  AT&T offers ||  Verizon offers

Verizon Wireless announced significant price reductions for those customers looking for unlimited monthly service.  The new rates will be available January 18 for new customers.  Existing customers can also change their rate plans as of that date with no penalty or contract extension.

We’ll have the new pricing up on the site Monday and you can compare it to other carrier plans using our CellCalc ^(TM) rate plan finder.

The major changes announced iclude:

• Price for unlimited voice plan drops from $99.99 to $69.99
• Unlimited voice + text drops from $119.99 to $89.99
• A $9.99 data plan will be required for new activations on all 3G multimedia phones.  These are phones, such as the LG enV 3 that provide a better data experience but don’t have an operating system that would qualify them as smartphones.
• Monthly prepaid plans will be available for $5 more than comparable postpaid plans.  Examples include $44.99 for 450 voice minutes to $124.99 for the unlimited voice + text listed above.

MyRatePlan Analysis: This plan structure is similar to one introduced by T-Mobile a couple months back and is another step toward the day when there will basically be one plan for light users and unlimited for everyone else.   Verizon maintains a premium over T-Mobile pricing, although the difference will shrink considerably.  Perhaps perceived differences in network quality were not enough for consumers to justify paying  $99.99 for a service that was available for $50-60 everywhere else.   Since AT&T pricing structure was almost identical to Verizon’s, that carrier will likely be forced to modify rates in the weeks ahead.

Some of the revenue loss from this new pricing, to the extent it isn’t recouped by gaining market share, will be offset by the new $9.99 data plan requirement on 3G multimedia phones.  Currently, Verizon (and all national carriers) require a data plan on smartphone/BlackBerry devices that is roughly $30 a month.   Verizon is the first carrier to push that requirement onto this next tier of phones.   Since this list includes most of the popular Verizon phones, the effect is that almost all new Verizon customers will be required to have a data plan.

The new prepaid monthly plans provide a way for customers reticent to sign a contract to get full-blown service for about the same price as contract customers.  However, as is usually the case, we expect the phone prices to be significantly higher.   It also isn’t clear yet whether all phones will be available for no-contract service.   If they are, it will be a significant improvement from the limited inventory currently offered.   It is interesting to note that while T-Mobile offsets the higher phone cost of no-contract by having its plans priced $10 LESS per month than contract, Verizon’s new structure will still have prepaid priced higher than contract plans.

T-Mobile completely overhauled their cell phone plans today, droppping ‘myFaves’ and simplifying to just 3 plans each for individual and family plans.   The highlight is a new low-water price point for contract unlimited voice service — just $59.99 for one line and $99.99 for a two-line family plan.    All plans include unlimited mobile-to-mobile and free nights and weekends.    On a per-line basis, unlimited text messaging is $10.00.  The optional data feature is an additional $10 for regular phones, while the required data plan is $30 for BlackBerry and other smartphone devices.      At the same time, T-Mobile has launched an identical series of no-contract plans that are priced $10 ($20 for some family plans) less than the corresponding contract plan.     As with other no-contract and prepaid plans, you’ll pay significantly more for the phone.    To compare the new contract plans with other carriers’ options, visit our CellCalc rate plan comparison tool.

MyRatePlan Analysis: We’ve been forecasting that by the end of 2010, there will be just two voice plan options –a small bundle or pay-as-you-go for light users, and a flat rate unlimited voice for everyone else, with text and data as add-ons (probably marketed as bundled plans).  T-Mobile has taken a big step in that direction with these changes.     They’ve also addressed a pricing distortion in the marketplace, where contract unlimited service was $100 per month, while prepaid unlimited with services like Boost Mobile and Virgin Mobile is about $50 a month.   T-Mobile is now matching the $50 for no-contract service, and sets a price point for contract service that will force other carriers like AT&T and Verizon to respond.

Digging deeper into the changes, T-Mobile has actually raised some prices as part of these changes.  Data pricing for smartphones has increased $5 per line, while text messaging has been consolidated into a single $10.00/month plan.  Previously, there was a $5.00 plan offering 300 texts.  Since pay-as-you-go messaging remains $0.20 each, this will force more new customers to opt for a more expensive text bundle than they might have otherwise preferred.   The low-end $39.99 rate plan actually has fewer minutes now than before; this will also encourage more new customers to trade up to a more expensive rate plan.