Cell Phone Service Buying Guide

Go Big or Go Small
Generally speaking, prepaid service from the smaller carriers—such as Consumer Cellular, Mint, and Ting—benefits people with modest data needs (web browsing, email, Facebook) because they have lower-priced plans for lower data allotments. Heavy data users, especially those who want three or more phone lines, will most likely be happier with one of the big carriers (AT&T, T-Mobile, and Verizon). If you own a smartwatch or a tablet with a cellular connection, you might find better support for those devices at a larger carrier as well.

Confirm the Coverage
To confirm basic coverage in your area, especially if you’re looking for 5G, use the ZIP code maps and other resources provided on the carriers’ websites. But keep in mind that those references don’t take into account small dead zones in your neighborhood, so try to ask local friends how well their phones work in your area.

You should also make sure that you can cancel service and return any phone you purchased through the plan if a coverage problem crops up. For some carriers, the grace period is a brief 14 days. They might charge a restocking fee as well.

Count Your Phone Lines
That’s easy: That’s you plus your immediate family, but it’s okay to cover people who don’t live with you, too.

Do the Math
For smartphone users, the biggest decision is whether to sign up for a monthly allotment of data or an unlimited plan. Generally speaking, the more lines you have, the more attractive the unlimited plan becomes. 

The amount of data you burn through each month depends on your WiFi access (the more you’re away from it, the more cellular data you use), and how much you use a cellular connection to stream or download content, or play online games.

The smaller carriers, which lease network space from the three big companies, will sell you bundles of gigabytes each month (divvied up by line or pooled in one lump sum), but some also offer an unlimited plan. AT&T, T-Mobile, and Verizon offer different tiers of unlimited plans, with various data allotments for things like mobile hotspot data use when you employ your phone to access the internet on your computer at, say, Starbucks.

For families with multiple lines and at least one or two heavy data users, unlimited plans often offer a better deal, because shared buckets of data don’t go very far. With data allotment plans, you can forget about extras like free subscriptions to your favorite streaming services, too.

Odds are you haven’t made changes to your cell service in years. That’s too bad. According to Consumer Reports’ most recent member survey, 59 percent of the people who had recently switched cell phone carriers said they saved money. Many of them also said they now enjoy more reliable coverage, faster data service, and better customer service. But only 6 percent of our members switched cell phone carriers in the past year—perhaps more should consider shopping around.

CR members can consult our article on the best and worst phone plan providers and our service provider ratings to see which companies offer the best value, customer support, cellular reception, and data service.

With the demise of the two-year contract, the cost of your phone is now clearly separated from the cost of your service. That leaves you with two solid options.

Pay Up Front, Keep Your Monthly Bills the Same
Not a bad choice if the phone model you’re eyeing isn’t too expensive. It also makes sense if credit problems prevent you from buying a phone in installments.

Pay for It Over Time
This is a great way to purchase a phone, especially if you have expensive tastes. The full retail price is usually divided into 24 or 36 monthly installments. After two years, you can scratch that fee from your bill. Plans differ by provider, so read the fine print before signing up.

If you buy the phone from your carrier, you have to commit to that carrier until the phone is paid off. If you leave, the balance is likely to be due immediately. Note that if you get a new phone at a discounted price from the carrier as part of a promotion or because you traded in an old phone, you might be required to pay the full price of the phone if you leave before the phone is paid off.

Once it’s paid off, though, your wireless carrier is required to unlock your phone for free so that you can switch to another network.

Retailers like the Apple Store and Samsung also allow you to finance your purchase. And they’ll sell you an unlocked phone, so you won’t be tied to a particular carrier.