Key facts
- The average cost of a cellphone plan in the U.S. is $141
- Illinois has the highest wireless tax rate, at nearly 34%
Having access to the internet has essentially become a requirement for accessing our data, our jobs and even our offline social circles. Our cellphones give us that access in the palms of our hands, anywhere, anytime, so it’s no wonder most folks would rather give up home internet than their phone if forced to choose.
With prices rising on the cost of a phone and mobile plans, how much does the average mobile plan cost these days?
According to JD Power, the average monthly cost of a cellphone plan is $141. At almost $1,700 a year, it’s not an insignificant cost. It pays to look for deals, promotions, discounts and bundle savings to trim that cost.
Major national mobile networks include:
Provider | Pricing | Plans | Data | Lines allowed | Internet bundles |
---|---|---|---|---|---|
T-Mobile | $60 to $90/mo. | 3 | 50 GB/mo. to Unlimited | 5 | Yes |
Verizon | $30 to $90/mo. | 3 | Unlimited | 4 | Yes |
AT&T | $30 to $85/mo. | 3 | Unlimited | 5 | Yes |
Consumer Cellular | $20 to $50/mo. | 4 | 1 GB/mo. to Unlimited | 4+ | No |
Boost Mobile | $15 to $25/mo. | 2 | Unlimited | 5 | No |
Mint Mobile | $15/mo. for all | 4 | 5 GB/mo. to Unlimited | 5 | No |
Factors affecting your mobile plan’s final cost
Of course, your plan’s final cost will vary due to several factors that might be different for you.
Number of devices on the plan
This is the largest variable that could increase the average cost of a wireless plan. Additional lines cost anywhere from $30 to $60 to add to a plan. For example, a plan with four people would cost around $190 and a plan with five would be over $220 with unlimited data.
Device choice
The type of smartphone you pick can also drive up your monthly bill. If you need the latest tech for a cellphone camera, extended battery life or the newest market gadget, like a foldable phone, be prepared to pay a bit more each month.
Some providers break up your device price over your contract term, so you pay that cost monthly, which adds to your final bill.
If you value money over having the latest tech, look for plans that include a phone — those will save you the most money.
Wireless taxes and local fees can vary by state and city
Like your cable and internet bill, several taxes are levied on carriers to help build and maintain local infrastructure. They then pass those fees on to us, of course, but they vary by state. The best deal to find is one that says taxes and fees are included in the advertised price. This way, you don’t have sticker shock with your first monthly payment.
Where you live matters to the bottom line. If you’re in Illinois, you should know that your state has the highest wireless state tax at 22.96% for a total of 33.79% total tax on your monthly plan.
The cheapest state to pay for a mobile plan is Idaho at 2.89% for a total of 13.72%.
For example, in Illinois, your T-Mobile Essentials plan of $60/mo., which doesn’t include taxes and fees, will be $20.27 extra in taxes for a grand total of $80.27/mo. This same plan is only $68.23/mo. in Idaho. These are just based on federal and state taxes; some localities also have local taxes on mobile services.
Cellphone advertised prices and fees
The monthly advertised price is often an eye-catcher, like $15 or $30/mo. Read the fine print, though, as that price may not include the various fees other than taxes that can be tacked on:
- Early termination fees ($150 to $300)
- Roaming and international fees (varies)
- New phone activation fees (typically $20 to $40 per device, sometimes waived)
Bundling internet and phone
Several internet service providers (ISPs) also offer mobile phone plans, using the coverage of larger cell carriers like Verizon and T-Mobile.
It can be a cost savings to combine both services. For example, Spectrum mobile plans start at $29.99/mo. per line, but can be combined with internet and Wi-Fi with Spectrum One at $49.99/mo. Considering the internet plans alone start at $49.99/mo., that’s a great deal of savings.
The only catch is that for most ISP mobile plans, you have to be an internet customer. Optimum is open to non-internet customers, but there will be a surcharge.
ISP | Price | Data | # of lines | 5G | Availability |
---|---|---|---|---|---|
Spectrum | $29.99 to $39.99 per line | 3 GB to unlimited | Up to 10 | Included | Must have Spectrum internet |
Xfinity | $30.00 to $50.00 per line | 30 to 50 GB | Up to 10 | Included | Must have Xfinity internet |
Optimum | $15.00 to $55.00 per line | 1 GB to unlimited | Up to 5 | Included | Surcharge for non-Altice internet customers |
Cox | $30.00 to $45.00 per line | 1 GB | Up to 5 | Included | Must be a Cox internet customer |
Other cellphone plan discounts
If you’re a senior, military veteran or student, or qualify for other low-income assistance programs, you’re likely qualified for a discount on your cellphone plan. Some programs available include:
Alternative plan options
If you want the cheapest phone plans available, your best option may be a mobile virtual network operator (MVNO) like Red Pocket and Mint Mobile.
These carriers have agreements with larger providers like Verizon, AT&T and T-Mobile to use their infrastructure to provide service to their own specific customers. MVNO costs are lower since they do not have the expense of cell tower construction, upkeep, etc. A potential downside of signing up with an MVNO is that their customers are often deprioritized by the larger network during high-volume times, so your service may see periods of slowdowns.
Summing it up
Doing your homework can save you money when purchasing a cellphone plan. If you have an internet plan with AT&T, Verizon, T-Mobile, Optimum, Spectrum or Xfinity, check to see if you can save by bundling it with their mobile phone plans.
Not sure if you are serviceable by one of these ISPs? Check your address to see if you can save a bundle while bundling.
See Allconnect’s research hub for similar articles.
Written by:
Robin LaytonEditor, Broadband Content
Robin Layton is an editor for the broadband marketplace Allconnect. She built her internet industry expertise writing and editing for four years on the site, as well as on Allconnect’s sister site MYMOVE.com. … Read more
Edited by:
Anine SusEditor I
-
FeaturedCan a mobile device replace your home internet? Robin Layton — 6 min read
-
FeaturedTips to secure and protect your smartphone Robin Layton — 4 min read
-
Featured7 tips to reduce lag when online gaming Ari Howard — 4 min read
Latest
-
Tuesday, November 5, 2024
How to share your Wi-Fi password on an iPhoneCamryn Smith — 3 min read
-
Monday, November 4, 2024
Federal government takes a look at ‘doom loop’ of customer supportRobin Layton — 2 min read
-
Thursday, October 31, 2024
Why is my internet so slow during the day?Camryn Smith — 4 min read