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After crunching the subsidized cell phone math and multiplying the mobile contract costs, I came to the conclusion that buying an unlocked iPhone 5 outright from Apple with zero ties to any contract-wielding carrier is a ringin’ deal.
Since this blog is about being a smarter, less spendy consumer, I’m going to walk you through my decision to spend a whopping $783 on a freaking smartphone.
I have happily used my relic of a cell phone for the past 7 years, and I wrote about resisting the call of new phone technology in Do you really need that upgrade? While I’m awesome at delaying gratification, there comes a time when technology becomes unusable, deprecated, or broken.
I love working in the Apple ecosystem, and spending more for an operating system, the applications, and hardware I prefer is worth it to me. Also, with so few carrier options, studies show that mobile service in Canada is overpriced and anti-competitive.
Being dialed in and handcuffed to a contract and carrier was never my preference, but I still ran the numbers using the tools that have saved me money over the years — my brain and a spreadsheet. Mobile nerds can open my mobile cost comparison spreadsheet, but I’ll just tell everyone else the results. I then compared the monthly cost of going prepaid (aka Pay-As-You-Go) with PC Telecom and Koodo Mobile, a subsidiary of Telus with plans that let you carry-forward unused voice and data balances. After pricing out SIM cards, base plans, and calculating data needs, my preference went to Koodo Mobile for flexibility and a low $26.32 per month cost. Bottom Line: After doing two basic mathematical calculations known as addition and multiplication, I came to the conclusion that opting for a prepaid plan could save me nearly $30 per month, or just over $1,000 in monthly fees over three years. Use your cell phone outside your local area or travel to another country, and you’ll likely get whacked in the wallet by crazy high roaming charges. It’s no shocker that Canada is known to have some of the world’s highest roaming rates.
A SIM card is a small, thumbnail-sized chip that stores your phone number and personal information. I have every reason to be terrified of bill shock, especially since Canadians have little protection and warning when they’re set to hit data limits.
By April 2013, more than 97% of American wireless customers will get automatic usage alerts when consumption of data, voice, text, and international charges approaches or exceeds plan limits. Bottom Line: Paying the big bucks for an unlocked cell phone and opting for a prepaid plan can save you money by helping you to stick to a usage limit, capping spending, and avoiding the dreaded bill shock.
Before dropping $783 on my brand new unlocked iPhone 5, I searched a slew of online classified sites to see if a used unlocked iPhone could be had for less. After nearly laughing my a$$ off, I discovered that gently used unlocked smartphones are pretty decent at keeping a high resale value. Given my cell situation I’m set to save a minimum of $480 over the next three years by paying $783 outright for my fancy unlocked iPhone 5. How much would you have saved by ponying up the cash for that pricy cell before locking into a lengthy phone plan with a greedy service provider? We have a basic cell that my son bought back in2009 after his father had a medical emergency and while he was in hospital our landline with Bell went down. So while you make great points i would just like to point out that if you are a person who cannot afford to buy your phone out right and you absolutely need one as you have no home phone the small companies are generally great for contracts. I think one of the main reasons people go for contracts is so they spread the cost of the phone out over several years (even if it costs more in the end).
Other valid reasons for going contract is it can be a better deal for heavy users (at least in the UK it can be), there is no risk of running out of credit, and the people like the experience (similar to you preferring the Apple ecosystem despite the higher cost). Hey Kerry, I like your analysis but if I’m correct, your usage plans didn’t include data right? Ouch, $783 is more than a month’s rent for me so I was startled to see your latest post. One tip for people who feel they absolutely, positively have to have a smartphone: Find out what kind of plan your work phone is on. Sorry, meant to add that it’s usually also much cheaper just to buy a pay-as-you-go phone at your destination when you travel for calls within that country, and just use the phone for emergency long-distance calls (and Skype for all other long-distance).
I use virgin data card in my iPhone use fongo to make unlimited phone calls in Canada and Skype elsewhere. In Quebec, the termination fees cannot be more than the original price of the phone, decreasing per month. Since I bought a Galaxy Ace 2, priced at 200$, activated it on a good Canada-wide plan (25$!) and had a 100$ to buy the phone, it was a terrific deal! The other way to cover your a$$ (to use a Kerryism) is to buy a smartphone but don’t buy a data plan. Wondering if anyone has tried this $99 Freedom Pop sleeve thingy that claims to turn an IPod Touch into an iPhone? I recently paid Telus $35 to unlock my iphone (they will do this for anyone who has been on contract for 3 months, I think) with the idea of swapping SIM cards while down in the US. When I set mine up, I went with Rogers because they were the only carrier to offer a prepaid $100 plan that wouldn’t expire for a year. The $55 plan includes unlimited talk, text and 5 GB Data at up to 4G LTE Speed Then slowed to unlimited 2G.

This plan offered cell phones prices from $19 to $149, most of these cell phones are running Android system. The Renoir plan for $15 includes 500 talk minutes, 500 text messages, 500 MB of data and Wi-Fi calling. The Miro plan for $15 includes unlimited talk minutes, unlimited text messages, 2GB of data and unlimited Wi-Fi calling. Cheap cell phone plans are easy to set up and come without the hassle and wasted money that a traditional cell phone plan could produce. The beauty of using cheap plans is to own a free cell phone unit without the extra cost to spend on your end. Expensive cell phones can easily get lost or stolen in another country, and an American chatting on a pricey mobile phone can be a target for thieves. While prepaid cell plans cost users the least for wireless service, there is no one single cheapest cell phone plan that is best for everyone. When considering different prepaid mobile phones and their plans, realize that some carriers charge a fee for each day your phone is used. Airvoice Wireless has increased data recently on the $30 and the $50 monthly plans to 1GB and 5GB, respectively but increased data aren’t all at high speeds as earlier reported. Airvoice Wireless that operates on AT&T network has improved its monthly unlimited plans ones again.
AT&T MVNO Airvoice Wireless has updated its website with recently lowered Pay As You Go data rates and improved monthly plans. AT&T MVNO Airvoice Wireless now has a new, significantly cheaper data rate that it charges customers per megabyte. Airvoice Wireless, AT&T MVNO, has recently introduced positive changes to its monthly plans. Plan Type The plan type indicates what type of customer the plan is meant for, how many lines it can support, and how you it will be billed. An unlocked cell phone is not tied to the carrier you bought it from and can be used with most mobile carriers anywhere in the world by swapping something called a SIM card.
The world (and internet) have changed drastically since I starting using my 2006 candybar cell, and not being able to text friends, check my email, or do bloggy-related things online made my old phone a major liability.
First off, Canadians have the world’s longest mobile phone contracts — sign up for a subsidized phone with one of the big three carriers (Bell, Rogers, or Telus) and expect to be on the hook for three long years. After comparing the cheapest cell plans offered by Rogers, Telus, and Bell, the numbers were so uncompetitive and similar that averaging a price with a subsidized iPhone 5 was so easy-peasy, it kinda made me queasy.
Going prepaid with an unlocked phone also gives me the flexibility to swap SIMs and switch providers if a better deal comes to town.
Bell Canada issued this Canuck a $9,350 data roaming bill after his visit to Israel, but excessive smartphone roaming fees can happen during quick jaunts to neighbouring countries too. Americans may have greater choice in the mobile market, but there are cases where roaming Yankees got stuck with a $10,000 phone bill too. When your cell phone is not locked to a specific carrier, you can easily switch networks by swapping the SIM with one from a local service provider and avoid exorbitant roaming charges. It happens when you unknowingly go over your plan’s voice or data limits and your provider charges you dearly for the overage, without warning.
Wading through the used locked iPhones was a hassle, especially since most were being sold with a 2-year contract still attached! If you like upgrading your mobile gadgets often, choosing to pay more up front for an unlocked device could save you a bit of money since the resale value is decent. And these savings do not account for potential overages, roaming fees, and other gotchas an inflexible contract might cost. In the states, it has to be transferred over from one company over to another to keep the number yours.
Sean and I were spending approximately $160 per month on our Bell plan and as Kerry pointed out that did not include key things like if Sean went over his Data amount and if I wanted to call my family across the country.
It was pushed through by the big providers (AT&T and Verizon) under something to do with copyrights.
Your best bet (in any country) is to contact the target carrier for instructions on how to move your digits.
Nice thing about Koodo prepaid is these blocks never expire, so you can carry them over to the next month.
In my opinion, the only reason for a fancy phone is so that WHEN on trips, you have access to maps, email, internet, your music, your videos, and a camera, with zoom apps already installed.
I am not making huge savings but I enjoy the flexiblity of having an unlocked phone when I travel. Between home, work, school, yer local java hut, etc., you might only be out-of-range for an hour or so a day.
To keep my data cost low, I connect to free wifi at work and other public spots and use my home wifi. I’ve been using this for several years now, and usually need to put more money on my account every 10 months or so.
Includes nationwide coverage and long range, caller ID, no contract, voicemail, call waiting, no check credit.

For many online shoppers it can become quite difficult to tell if you have the best cell phone plan. Some cheap phone plans offer unlimited voice, text messaging, and data for $40 per month per user.
Before applying for any plan you should make sure that, there are some hidden clause inside which in the end will prove that you have not benefited at all from such schemes.
You cannot use your cell phone with a different cell phone carrier until the cell phone contract has expired. If you have old cell phones that you don’t use any more, you can sell them to one of the companies below and get some money back while keeping your old phone out of a landfill. Like our basic mobile plans, smartphone plans offer unlimited talk and text with additional special features plus unlimited 3G data and Web access! The $30 plan now includes 1 GB of data instead of previous 500 MB while the $50 plan has 5 GB of data per month instead of previous 2 GB. On all plans, Airvoice adds free international texting while unlimited calling to more than 70 countries is available with $40 monthly unlimited and higher plans.
Until now, users of Airvoice’s $30 Unlimited monthly plan only had 100MB of data available. According to their website, Airvoice data on Pay As You Go plan are available for 6.6? per MB instead of 6? (down from 33?). Airvoice Wireless is one of them and unlike last time when only data rate has been lowered from 33? to 6? per MB, all Airvoice plans are changed now, bringing more data to the customers overall. Users can now renew the $10 plan easier, without losing days of service or rollover balance in case they have it on their account. First, Airvoice monthly plans, three of them, are cheaper now for $5 while their $50 plan is lowered for $10 and now is available for $40. You'll pay a premium for these plans, but never worry about going over your limit again! Contract termination fees can cost you hundreds, even if you’re staying with the same carrier. Heck, this Verizon customer racked up a $1,500 cell phone bill in 12 days thanks to a little travel. The shock part happens when a defibrillator is needed to revive your body after your brain realizes the financial impact of that massive cell phone bill.
After adding up contract costs, comparing unlocked and subsidized phone options, fearing bill shock, and popping SIMs to avoid roaming fees, I think maybe it’s time to rethink how we buy cell phones. Also, if you’re coming off contract with one of the big 3 you might want to talk to your carrier about a monthly plan and BYOD (bring your own device) to use on the network.
The way that contract-breaking is calculated has changed in the last few years and now the only amount that you have to repay is (percentage of your contract remaining) x (amount subsidized) which makes the decision to sign a contract or not dependent on what the user will do with the phone.
And you’re Bible, guitar chords, games, emergency contact info, reservation info, medical and personal contacts and more all previously organized and easily available to you or those caring for or playing with you.
Mostly I use the apps and it’s a very mobile computer around the house (where it uses my wi-fi network).
I love the fact that it’s so cheap and if my usage ever does go up, I can bring my phone to whichever company is going to have the best plan for how I use it. The cell phones that come along with the cell phone plans differ widely with each service provider.
The $20 plan includes unlimited talk, text, MMS, international texting and 100MB of data with first 50 MB at high speeds. Other Airvoice plans remain the same for now but definitely something will have to be changed since $40 plan now includes the same amount of data as on the $30 plan and the $60 plan includes less data, 3GB than the $50 plan, 5 GB of data.
The carrier also adds a new $50 unlimited plan that comes with unlimited talk, text and 2GB of data. On the $10 monthly plan, which is also a pay as you go option, data are available for 2.5? per MB. The change is not reflected on the carrier’s website yet but Prepaid Phone News confirmed it with its representative. Canadians are the big losers in the mobile space, paying a chart topping $67.50 for voice, text, and data plans. Finally, with such an expensive phone get the Apple Care option or the equivalent for new non-Apple phones.
Also if our phones are not paid off in 3 years they will just clear the tab and call it a loss. The $5 plan that’s good for five days includes unlimited everything that $20 plan has plus 25 MB of data; first half of data allotment at high speeds and the rest at reduced speeds.
So instead of spending $160 per month between the 2 of us we spend $80 per month between the 2 of us. So if you have to go into contract then do your research and don’t go with the big companies.

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