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.

This is a nice benefit we just came across, associated with the Citi Forward Credit Card:

Use your Citi Forward card to pay your cell phone bill and get free protection (up to $250) from damage and theft.  All phones (including iPhones and smartphones) from all telecom providers are covered.

If you don’t want to spend $5 a month for cell phone insurance, but still want some coverage, this might be an easy way to do it.

This is a very attractive credit card, especially if you pay off most or all of your balance each month.   0% APR for 6 months, no annual fee and a generous rewards program.

To apply for the Citi Forward Card, click here.

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.

At long last, AT&T has made picture and video messaging available on the iPhone. For those who already have a text messaging package, these message types are included in the plan and are treated like text messages.

To receive the new capability, you’ll need to connect the iPhone to your computer and download the latest update from Apple.

Shipped directly from AT&T with priority two-day free shipping.   Requires new two-year AT&T service.  Per AT&T, “refurbished phones are previously owned devices that have been unused or lightly used and returned during the 30-day trial period.”

8 GB iPhone 3G:  $49

16 GB iPhone 3G: $99

Apple iPhone 3G

Correction added 9/11: This offer is a bit better than we originally thought. Despite specifically indicating in the press release that this new service applies to calls “from the Sprint network”, it actually applies to both inbound and outbound calls between two wireless phones.

Sprint announced today a new feature called “Any Mobile, Anytime” that builds on the concept of free mobile-to-mobile calling by offering free calls to any wireless phone on any U.S. carrier.    The new feature will be available to new and existing subscribers of Sprint’s Everything Data plans, which start at $69.99 for one line and $129.99 for a family plan.

MyRatePlan Analysis: This move is a bit of a yawner. Sprint is obviously hoping this feature will encourage more people to move to the higher revenue data plans.  They are promoting the feature as a way to break free of restrictive calling circles (where a subscriber can call a set number of ‘favorites’ free of charge, whether wireless or not).   We’re not sure the comparison is relevant, since Sprint is pre-determining what the calling circle is (all wireless phones) and it only includes outbound calls.    Granted 250 million cell phones is a big calling circle, but since most people probably don’t know if numbers they are calling are wireless or not, it is going to be tough for customers to translate this feature into anything actionable in terms of saving money.  We think it will make it more confusing for prospective customers to choose the right Sprint plan for their needs.

Bigger picture, however, this is one step closer to the day where all cell phone plans have unlimited minutes.

Starting September 6, new AT&T customers who purchase a smartphone or BlackBerry, as well as existing AT&T customers that upgrade to one of those devices will be required to purchase a $30 data plan with their phone.   This requirement puts AT&T in line with the other major carriers, all of whom have had this requirement for a while (although pricing varies by carrier).   Until now, AT&T had only required a data plan for the iPhone, one that is built into a separate series of plans available for that device.

MyRatePlan Analysis: The impact is likely to be fairly small, as most people who purchase a high end device would likely purchase data service to take full advantage of the features.  However, future customers (and those upgrading) who are mainly interested in having one of these phones for texting via the QWERTY keyboard may choose to instead purchase one of the many “quick messaging” phones offered by AT&T.  These will not require a data plan.    On the business side of things, BlackBerry may see a slight reduction in market share of AT&T’s business if customers forgo those devices to avoid the data plan.