Crunching the Numbers On Shared Cellphone Contracts

itwbennett writes "The Wall Street Journal has a handy online calculator to help you sort out which phone plan is best for you. But one thing you'll notice is that shared or 'family' plans rarely offer any real savings, or benefits beyond the convenience of having a single bill, says blogger Kevin Purdy, who is bracing himself to propose a phone plan separation with his wife."

Comments

What About the MVNOs?

[Anonymous Coward]

That calculator leaves out the MVNOs which are decidedly cheaper. The one that comes to mind is Bandwidth.com's Republic Wireless which offers unlimited data, texting and voice No Contract for either $19/month or $29 month, depending on how you purchase their phone. (Using the WSJ calculator, the next closest price I could find for unlimited data was T-Mobile at $70/month) The main catch is that you have to buy a specific phone--the Motorola DEFY XT, which again, depending on the plan you choose is going to be either $199 or $99. They have a special feature that I think is quite interesting--probably all of the carriers should allow this--you can connect to a WiFi and use that to make or receive calls--this is a good idea for bad reception areas and basements. The phone itself seems to be okay. Its reviewed well, but it is a bit outdated. At least it is a durable, waterproof phone though. Reviews for the phone and for Republic Wireless seem to be quite good over all. Here are a couple of the best ones that I have seen: A customer review http://longmeadcrossing.com/republicWireless.htm Time Magazine Review: http://business.time.com/2013/02/22/the-19-per-month-smartphone-is-actually-getting-decent-reviews/

Re:What About the MVNOs?

[Phreakiture]

The calculator is also wrong.

According to this calculator, I should be paying $210/month before any taxes and fees, with my particular carrier and profile. I am, in fact, paying $140 after all taxes and fees. Given that it provides incorrect information for what I know, I don't feel I can trust it to provide me correct information for comparison purposes.

Wrong conclusion?

[Todd Knarr]

I priced it out using that calculator for 4 lines (unlimited voice, unlimited messaging, 2GB data per line). T-Mobile costs $140/month for a shared plan vs. $240/month for 4 individual plans. For 2 lines it'd be $100/month shared vs. $120/month for 2 individual plans. I see exactly the opposite of the claim: the shared plan is more economical than individual plans for everything but the most limited usage. And that T-Mobile's plans are more economical than anybody else's, which may explain why T-Mobile had such a good quarter.

Harder to switch

[jbeaupre]

One of the reasons providers offer a discount of families is that it makes it harder to switch away from them.