Battle of the text-messaging plans: Who is the cheapest?
December 23rd, 2008, 12:29 am · 9 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
Note: This is the first in a series this week about finding cheaper cell phone service. Find earlier posts and get more cell-phone info HERE.
A recent pitch from Sprint hyped its family messaging plans – and how they can save families “at least $240 and up to $1,000 annually.”
It goes on, talking about the tough economic times and then it compares its ‘Everything Messaging Family” plan to similar versions at AT&T and Verizon. But it left out T-Mobile, MetroPCS and all other mobile carriers.
Then I get an e-mail from T-Mobile saying that its plan “saves a family $120 a year over Sprint’s.”
Family plans are a great way to save money on cell phones. So I’m always shocked when I hear couples or families tell me that they use separate cell-phone companies. Then again, cell phone plans are
some of the most unncessarily complicated offers out there. AT&T Wireless alone offers 16 family plans!
I decided to once and for all, sort through the mess and figure out which is the cheapest and which offers the best value. This is the first of a series this slow holiday week. Today, I tackle family text messaging plans.
This isn’t comprehensive and I didn’t include limited-offer deals. But this is a start. I’m sure I’ll hear from some of you asking, “What about X?” Let me and others know about better deal by commenting below. I’ll expand the list as time and interest permits.
And the cheapest family messaging plan is … T-Mobile.
I compiled the chart below gathering prices from each company’s site. The numbers below are totals for two people on a family plan opting for unlimited messaging. You’ll save even more if you add more family members, since most charge only $9.99/month each for up to 3 more people. The total monthly fee doesn’t include activation, phones, taxes or other charges.
| Family text-messaging plans | AT&T | Sprint “Everything” | T-Mobile | Verizon “Select” | MetroPCS |
|---|---|---|---|---|---|
| Unlimited texting | $30/month | yes | $19.95/month | yes | $3/line |
| Unlimited video messaging | yes | yes | yes | yes | $5/line |
| Unlimited picture sharing | yes | yes | yes | yes | yes |
| # of lines | 2 | 2 | 2 | 2 | 2 |
| Shared minutes | 550 | 1,500 | 700 | 700 | Unlimited |
| Extra minutes | $0.45 | $0.40/minute | $0.40 | $0.45 per minute | n/a |
| Price | $59.99 | $99.99/month | $59.99 | $99.99 | $70 |
| Additional lines | $9.99 | $9.99/month | $9.99 | $9.99 | varies |
| Activation fee | $36 first/$26 additional | Up to $36/line | $35/line | $35 first/$25 additional | none |
| TOTAL (per month) | $89.99 | $99.99 | $79.94 !! | $99.99 | $86 |
To get the $80/month package from T-Mobile, minutes are limited to 700 per month. If you talk a lot, this isn’t the plan for you. I do really like T-Mobile’s $19.95/month unlimited messaging plan, which is good for all members in the family plan. T-Mobile is also the only company selling a Google phone right now.
MetroPCS, the second cheapest, is the suprise newcomer to this market. A major downside to the company is limited coverage area, which I’ll address in a future post. But unlimited voice — day and night? Ditch the unlimited video messaging and the price drops to about $76/month, which makes it cheaper and a better overall deal than T-Mobile. It has three stores in Orange County, plus numerous places to buy service and phones.
In cases of Sprint and Verizon, which had special messaging family plans, I quickly ruled out their a la carte plans because they added up to more than the special plans available.
Of course, if you talk on the phone a lot and need the extra minutes and need a more comprehensive national plan, Sprint is the way to go. Sprint’s cheapest family plan is $69.99. But add on two unlimited messaging plans at $20 each, and the price pushes past $100 per month. However, it’s ‘Everything’ eliminates the mess and offers a straightforward family messaging plan.
But back to the winner. One other added benefit of T-Mobile is its $10/month T-Mobile @Home-phone service. It works, I’ve tried it. And it could save a chunk of your monthly expenses. It’s not for everyone but for those wanting to cut their monthly home phone bill, this is a great option.
Coming up:
- Cheapest family plans
- An intriguing offer from newcomer MetroPCS
- What’s the big deal about prepaid?
Don’t forget to check out my new guide to cell phone services in Orange County, at gadgetress.freedomblogging.com/cellphones
For more cell phone news affecting Orange County residents and beyond, visit the Gadgetress cell phone archive.
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Here's a list of TV/mobile companies helping consumers one tweet at a time. 
It may be a ittle cheaper when you take a glance but in reality 700minutes shared between two people is very little. With metro pcs it’s unlimited day and night and weekend minutes no overage charges what so over. I;ve been with them almost a year now and my bill is the same monthly $44.87 with no changes. I say you can’t beat that. Unlimited minutes and texting included.
I got t-mobile. I have had it for 5 years now.
We have 4 phones unlmited text and 2000 shared min.
I pay around 145.00 month.
Figure that out and see if it is cheep…
Mark — I have to agree with Arlena, especially if you’ve got more than 2 people in the family plan. MetroPCS charges $100 for a family of four with unlimited calls. Add unlimited texting, at $3 per person, that’s a mere $112, excluding taxes. Plus, no contracts. Check the blog later this week for a profile on the company.
I think this article does a great job of pointing consumers in the direction of making aggressive comparisons between offerings from the mobile providers to achieve the best plan for their usage requirements. On this topic of “right sizing” plans, I wanted to write a follow-up post discussing a method that reduces the average consumer’s cell bill by 22 percent. Thousands of wireless subscribers are locating and eliminating unnecessary charges by having their cell bills analyzed through http://www.fixmycellbill.com by a company that I work for called Validas. When you upload your bill, you find out for free if you’re one of the eight in ten wireless customers paying more than you need to and, if so, by how much money your carrier is overcharging you. If you choose, Validas provides an additional highly detailed and personalized adjustment report that, for five bucks, is emailed to your wireless provider in industry specific format in order to implement Validas’s cash saving changes to your plan. If Validas can save you more than $5 on your bill (the average customer currently saves $482 annually through Validas), then this obviously provides a cost effective remedy for reducing cellular expenses.
Validas is becoming known as the preeminent advocate for the wireless consumer. Check out a feature about Validas on The Big Idea with CNBC’s Donny Deutsch at http://www.cnbc.com/id/22782456/. Validas has also been profiled in the New York Times and Business Week.
Happy holidays, and good luck to everyone on trimming down wireless expenses in this tough economy when every dollar put back in your pocket really counts.
Dylan
I have had T-mobile for about 4 years now.
I have the family plan for 59.99
and had added 3 lines to it for 9.99 each
n also have the unlimited texting plan for 19.99
i have a total of 5 lines on the family plan wit 700 mins, and unlimited text.
i know 700 doesnt sound that much but my family never goes over bcuz the fact that all my family n friends has tmoble so its free to call them
and im only paying 107.49 each month
i dont think u can beat that
i have 5 lines under t-mobile’s family plan. we have 1000 anytime minutes, free nights, weekends, mobile to mobile, and unlimited texts. the cost is:
70 for the plan
30 for the 3 extra lines
20 for the unlimited text
so the total is $120 for 5 lines. that comes out to $24/line.
the minutes are adequate because most of our minutes used are
included in the free mobile to mobile & weekend minutes.
so… in terms of pricing, i think TMOBILE is VERY GOOD!!
Gadgetress
I want to get a cracked 3G iPhone but I am not sure what (non AT&T)companies provide internet service compatable with it. I assume the iPhone uses a sim card so that rules out Sprint. Who has the cheapest internet connectivity?
I believe that this article is very misleading. I have two Metro PCS plans with UNLIMITED EVERYTHING (Internet, Email, Text Messages, Picture Messages and Minutes) and it costs 80 a month for 2 lines and there is absolutely no risk of additional fees. There is no activation fee, and when you buy a phone you get your first month free. I was with Tmobile for 4 years but had my phone stolen, reported it and Tmobile continued to let the thief use the phone and wanted me to pay in the tune of $500. Now that they have sent me to collections they are ruining my credit and I can now take them to court to reverse these charges. I don’t believe that a savings of $0.06 is worth the headache. METRO PCS is by far the best phone company out there.
Alltell has the worst texting for family plans, but good calling with the “My Circle”