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Apr 13, 2009 -- Virgin Mobile rolls out $50 unlimited calling plan

MONEY-SAVING MOMENT: The second-tier operators in the cell phone industry are in an all-out price war that can directly benefit you.

These include a host of smaller companies all competing against the Big 4 cell carriers by offering great deals with no contracts.

The Big 4 -- AT&T, Sprint, Verizon and T-Mobile -- all have a business model that's based on cowardice. They've developed lousy, stinking, rotten 2-year contracts because they're afraid to compete in the marketplace.

But the scrappy players don't fear the marketplace. Now the latest salvo in the price war has been fired by a second-tier operator called Virgin Mobile.

Virgin Mobile is offering $49.99/month unlimited calling -- no roaming charges and no contract. If you want texting, you'll pay an additional $10/month for unlimited service. If you want high-speed Internet, you'll pay another $10/month for 50 megabytes.

This is a direct response to Boost Mobile with their unlimited $50 plan, which includes everything for one low rate -- even junk fees!

Other second-tier operators include Metro PCS and Cricket.

Compare the Boost Mobile and Virgin Mobile plans alongside the offerings from the Big 4. A similar unlimited plan would be $135/month on AT&T or Verizon; $100 on Sprint; or around $115/month on T-Mobile.

Why would anyone want to pay that much money -- other than maybe an iPhone and Gphone user?

Even if you decide to stay with one of the Big 4, Clark recommends at least trying to re-shop your plan with your existing provider. You can often get substantial savings by making that simple tweak. And it generally won't extend your contract. Just double-check to make sure!

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Virgin Mobile rip off
    We got a Virgin Mobile cell for our handicapped son mainly to use as he goes to and from work and sometimes misses his bus. Or if he gets sick. It is incrasingly hard to find a pay phone these days. He has had it about 3 years but recently he has been plagued with calls from VM and from some spam that says PLAT to WIN. He had over 200 minutes the first of August and should have around 250 by now but instead has 63. Because these spam text messages were eating up his minutes they cut off his service. We are not buying any more until this is resolved. It is thievery in my view and now he is going to work with no phone. I have called and emailed with NO results. What do I do now?
  • Straight Talk $30 a month
    Great cell service on the Verizon network, only 3 phones available online only from Walmart, $79 & $99 Motorola phones. Customer service is badly spoken english reps!!!
    1000 mins, 1000 texts & 30mb per month
  • Virgin Mobile
    I had used Virgin Mobile in Australia continuously for a number of years. I figured i would try it out when I arrived in the US. I have been a happy Virgin Mobile customer for over a year now. Their customer service is friendly, prompt and very helpful.

    Although I am a young professional, I don't use my phone all that much. I pay $32/month for 200 minutes and 500 nights/weekends and 1000 txt. The phone was free and it works perfectly. I have dropped the phone repeatedly and it also survived total immersion in a large bucket of motor oil - When I picked up a replacement phone - about $10 with some free call credit included - the Customer Service Reps were very helpful in changing my service to the not-so-oily phone for free.
  • Boost Mobile Overload
    I switched my father from Alltel, which he had service with since 1993, to Boost Mobile because of their unlimited plan. Sure, Boost Mobile has "unlimited" everything but the call quality is horrendous despite what the coverage map says. If you reside in a rural area, you should stick with Alltel. Otherwise, you'll be disappointed. Needless to say I switched my father back to Alltel. It was a waste of money. :-(
  • Gotcha
    I am tired of the "Gotcha" by the big phone companies. They remind me of a bunch of sharks who are waiting for you to do something outside of your contract, then "Gotcha" with big time penalties.
  • Cricket cell phone
    I was a Verizon customer for several years. I paid $45.00 after tax & fees and only had 400 mins. a month without any extras, just minutes. My phone never last my 2yr contract, the battery usually died 1 1/2 yrs. Then to get a new phone I had to do another contract. Well finally I gave Verizon up and have been with Cricket for almost a year. There are some small problems but it's not a big deal considering what I get for my money. I get unlimited talk, unlimited text & picture & internet. You do pay more for your phones but with no contract, I am really starting to appreciate Cricket for only $56 a month including fees.
    Their service is growing and is in many States.
    Check them out!
  • MetroPCS- straightforward, no nonsense
    No contract, first month free, unlimited, same price every month, excellent coverage for my area (outside a very small town, in a wooded area), good service, easy and fast to pay the bill every month (no confusing statements, a great family plan for our three lines at $136.00/mo., I don't even have to think about it, a no-brainer, haha. Love it!
  • cell phone over charge
    4/29/02 Clark just got my new cell phone bill today and they are charging me with a $35.00 reconnect fee they say it is because i let my service with them lapse a month ago. Okay that may be true last month i paide them $116.00 to catch up with my payments. My payments run $97.00 every month my two year contract with them was up March this year. This cell phine company is ALLtel i have been with them for over 12 years. I want to kow is this legal and if so why. I am going to change my cell phone carrier in a month or two i am tired of their price since they took over First Cellular i have no nothing but problems with them an yes you can use thier name on the air. The only other cell phone company we have in th earea is Cellular One and i have heard some very bad things about them to. Every since Verizon took over ALLtel i have heard nothing but bad news about Alltell. I have 900 minutes a month and unlimited area plus unlimited text messaging that is my contract with them and it is very very high. Thank, you Mike
  • Tracfone
    If you mainly have your phone for emergencies or limited conversations, I recommend Tracfone. I've had mine for four years now. I got it in California. We drove across the US, using it all along the way and now live in Pennsylvania.

    For Christmas, I got my husband and son each one. I got a nice Nokia flip phone (with camera). The $100 I paid for each included the phone, one year of air time, 400 minutes and a doubler card which doubles any time you put on it for as long as you have the phone. It even doubled the first 400 minutes, so they started off with 800. Also, no roaming which for Tracfone means it only uses one unit per minute instead of two.
  • $8.33 month average cell bill
    T-Mobile's prepaid plan: $100 for 1000 minutes, expires in one year. Excellent if you're a minimal user as it averages to about $8 a month.
  • T-MOBILE
    UNTIL THEY START GETTING RID OF CANCELLATION FEES -- YOU HAVE NO CHOICE
  • 49.99 CELL SERVICE
    I HAVE HAD SERVICE WITH T-MOBILE FOR ABOUT 5 YEARS AND EITHER THE PHONE QUITS OR THE PLANS ENTICE YOU TO UP A BETTER PLAN. WELL T-MOBILE CALLED ME 'BEING ONE OF THERE APPRECIATED CUSTOMER' AND I NOW HAVE UNLIMITED SERVICE NO ROAMING,ETC FOR 49.99 AND TEXT IS 4.99 FOR 400. BUT MY CONTRACT STILL GOES ON TIL 12-2010. THEY WON'T DROP THE CONTRACT
  • Cricket Phones
    I got my first phone with Cricket when I was 16 simply because it was about all I could get as a high school kid. I've had their service for 9 years and I have no complaints. When I first signed on, all they had was local calling. The company, the variety of phones, and their plans have all grown up together. I would agree that their service wasn't as good as the big 4 in the beginning but they are definitely on par with the big boys now. My phone gets better service than my boyfriend's Sprint phone.

    And to the comment about tier-2 services being for dead beats and those with poor credit, I beg to differ. I've never switched from Cricket because I don't see the sense in being bullied into a 2 year contract that costs more than what I pay now. At least if Cricket ticks me off, I can cancel them, no questions asked.
  • To Jasper:
    There are phones out there Pay-As-You-use. You buy so many minutes then use them. No contract.
  • Tracfone?
    Doesn't anyone use TF? My friends have it and love it. How does it compare to Virign Mobile?
  • CELL PLANS
    I believe the 2 year contract subsidizes the cost of the phone.. you do not have to have a contract to do business with those companies...
  • BOOST
    At first it sounded good, but I have 2 numbers on my AT&T account for 89.00 a month---Boost would cost me 100.00 per month?!?!?
  • Phones and whatnot
    I'd love to ditch AT&T's service and go with a smaller provider again but no one else really serves my area but them and Verizon. Sprint and T-Mo don't offer local numbers or more than a mile or two of native coverage here.

    It could be worse, you could be like me: using a prepaid service and still spending $50/month ($20/month for minutes I never use and $20/month for unlimited internet, the rest in junk fees.)

    Unfortunately for those of us who use phones as a way to stay connected, there are NO good bargains anymore. :(
  • "Sandie"
    You asked about a fax phone. Thanks to Clark, I use my Magic Jack almost entirely for my fax. It works out great!
  • Sneeze and they'll renew your contract...
    We've been month to month with T-Mobile since our contract expired (after it somehow renewed itself magically when we called to add texting to our plan). Every time I call, they try to extend my contract but so far we've resisted. I'm awaiting the day when they change their policy so that you are charged minutes for calling voicemail, checking your minutes more than 3 times a month s a charge or calling 611 comes out of your plan minutes.
  • T-Mobile Unlimited for $49.99
    I have T-Mobile and they offered me unlimited service for $49.99/month. I didn't have to request it. I logged on one day to pay my bill and there was a message for this upgrade with NO contract required. If you have T-Mobile or one of the other major carriers, ask them to give you this deal. You might be pleasantly surprised.
  • Mobile Phone Charges
    I have been a mobile customer since 1998 and until 3 years ago was on the
    same 2 year contract. 3 years ago I got
    a new phone and another 2 year contract
    that has gone into its extension. I
    started with Cingular and unlimited
    phone service which became AT&T. I still have the same service plan and
    do not repeat do not pay over 50 bucks
    a month. As a matter of fact before the
    taxes and charges the plan is under
    40 bucks. I have traveled coast to
    coast and have never had a serious
    service problem. Some of the second
    tier folks do not have widespread
    service agreements with other providers
    which can result in serious dead zones.
    Before you sign with a second tier
    operator, get a map showing their zones
    of coverage.
  • To Lora
    If you haven't already, check for updates to your Blackberry's software and/or hardware (firmware).
  • Phone contract commitments
    Does anyone know of phone services that have one year rather than two year commitments?
  • Mobile phones
    Big issue here is connectivity. Can you get a signal where you need it?
  • Blackberry
    I have a blackberry world edition and it stinks. It locks up about 3 times a week and will not dial a number. You have to take the battery out and put it back in to reset the phone. The phone co. told me to remove the battery before it locks up (what kind of service is that) I hate the phone...
  • GOoooo Virgin Mobile
    You are right Nadine -- Virgin Mobile rocks. They are to me what Southwest is to Clark. GREAT customer service, low fees (I have a phone-only and it's around $7/month), and good phones. I have friends who own those slick but useless Moto phones -- you can't hear a word people say on those flatirons! I've been with Virgin Mobile since I first heard Clark talk about them YEARS ago -- awesome service, cool company -- no disappointments!
  • Virgin Mobile
    They also offer a $20/quarter plan for those who use a cell phone only for emergencies or little time. You get 20 minutes & unused time rolls over. You must pay at least $20/ quarter, but it is the best plan I've found for emergency use or little. One of the phones is free.
  • re: Blackberry
    Metro PCS just starting offering the Blackberry Curve!
  • T-mobile
    I will have to check it out, but it seems like we have a sweet deal with T-mobile. We pay $100.00 a month for 4 phones and my daughter has unlimited mesaging. We have 500 minutes a month with free long distance all the time and no minutes for nights or weekends. We never get even close to the 500 minutes because it's free minutes to talk other T-mobile phones.

    I would love to get rid of my landline, but I'm wondering when they will come up with multiple phones for one line. I can't see carrying my cell all around the house with me. And what about receiving faxes???
  • Virgin Mobile
    While it is true that there are "no roaming charges" with Virgin Mobile, it should be pointed out that Virgin Mobile does not have any roaming available that is outside of the Sprint network. IOW, there are many areas where the phone would not work at all. Prospective buyers need to carefully check the Virgin Mobile Coverage map, to see if it will meet there needs. The same thing is true of Boost.....their coverage is not everywhere.
  • Net10
    My wife has had Net10 for about 6 months and she loves it!! They are ideal for low to moderate cell phone users & NO CONTRACT!!!! Check their website,for good LG quality phones!!
  • usage
    Hey Jackie -- at 10 cents a minute - how much do you use that cheap phone versus the guy who paid some cash for his cool phone?
  • Net10
    I have Net10 and a cheap little phone that works better than my friends' razors, etc. Plus, I NEVER have a dropped call.
  • Net10 as second tier player
    I just recently acquired Net10 as my cell phone provider. They may be a second tier reseller, but I am quite satisfied with their service thus far. They use the At&t network on my GSM phone and the coverage in the Atlanta area is quite good. The phones are nothing fancy and are not the latest but they work. For light usage at 10 cents per minute they can't be beat.
  • Virgin and Boost
    I had Virgin Mobile first, before they had this unlimited plan, I paid $49.99 for my phone and got a $40 mail in rebate. It was a "cheap" little Nokia, not even a flip phone. That thing still works and I've dropped it a zillion times. And there were times when my little crappy phone worked better than the others I was with. My husband was always borrowing my phone because his company's Verizon phone either kept dropping calls or was breaking up so bad he couldn't talk. The other benefit is that if you do completely damage your phone, it is really cheap to replace. If your using a contract phone, you can't get a replacement for the same price as when you signed up! I switched to Boost last spring because they offered the unlimited plan for $50 and Virgin did not have that. I did get a more expensive phone this time, a Motorola camera flip phone for $119, but there was no activation fee and the first month was free. I also like that you don't get charged all the crazy fees with either, only sales tax on the $50. I am pleased to say that Boost gives me the same great service as Virgin did. I have never had to call customer service with Boost, which in itself is good, but I do know with Virgin that you talk to someone here in the states and they were always friendly. I recommend Virgin or Boost.
  • MetroPCS
    I have a cell through work, but I switched wife to MetroPCS not because we are dead beads as Tommy claims, but because it was the smart thing to do. Four years later, we never looked back, $45 for unlimited call, text and internet cannot be beat.

    Laura, Metro PCS has a Blackberry.
  • For Trish
    The larger companies have already invested the capital money in the networks. Companies like Virgin, Boost, etc do not own or operate towers or networks - they buy minutes from Sprint. Sprint makes money because they have a fixed cost - Virgin just has to pay for the cost to get the customer and bill them.
    Metro owns the towers but not the spectrum ( like in Atlanta) and the have not billing or customer care departments. The "2nd tier" carrier have very high customer churn or cancellation rates. The quality of the handsets is poorer with the 2nd tier
  • Mobile Phone Company
    Would someone explain how a second tier cell phone company can afford to have a 50.00 plan when the companies that paid for all the cell towers (tier 1) can't make that same offer. I know I am dense but it jsuwt doesn't make sense to me.

    Thanks for any thoughts on this one.
  • Blackberry?
    do any of these plans offer a blackberry?
  • Don't forget about drug dealers too
    Hey Tommy - don't forget about Drug dealers and illegal aliens -- they love Metro PCS
  • Poor credit - and dead beats
    Poor credits and dead beats -- that is who Merto PCS, Cricket and Virgin is for.
  • Cricket - No No No
    Someone tell Mike that calling New jersy is not international call.
    International calling for $35?? Pr also is not international
  • 2nd tier?? No way
    as someone said -- Often you will find that the 2nd Tier Cellular providers are using Sprints or some other Tier 1 providers Network. Boost, Virgin Mobile both use Sprint's Network.

    Same coverage and worse Customer care - No way
  • Virgin Mobile
    I've been a Virgin Mobile customer for several years. The reception is great - rarely do I drop a call - I immediately signed up for the $49 unlimited calling last week. This is an awesome company...oh, did I mention you get get talk to a customer service rep in the US???
  • Stick with the larger companies
    I challence you to reach a service rep at Metro PCS - you pay your bill or go away - they don't care.
  • Cricket
    I purchased service with Cricket in Philadelphia two months ago, and I love it! I talk inter-nationally unlimited on a $35.00 plan. No contract, first month was free, and the phones are not expansive at all. I was paying well over $100.00 for a 900min plan with txt included to my previous phone service provider. Why would I want to be tied down under a two year contract, and pay an arm and a leg for a service plan and expensive phones, when companies like Metro, Cricket, Boost, and Virgin Mobile are out there? That is just a no brainer!
  • second-tier coverage area
    What's the coverage area of these operators?
  • AT & T still my pick
    Although the other carriers would be a good individual choice, if you have more than one person on your line, the family plan is still more economical. I pay under $90 for four of us. But if it were just me I would consider one of these.
  • Virgin user
    I've been using Virgin for nearly 3 years now and I have to say their customer service is fantastic! I chose them because after being in Europe for 3 years I couldn't stand the idea of a contract. Virgin has great coverage (I travel a lot across the country and rarely have a dropped call) and I love the fact that I can change from a minute plan to a monthly plan, and back, whenever I choose. Why pay more for cell service or get into a contract if you don't have to?
  • Low Cost Cell Phones
    I have a nTelos plan w 3 phones that share 1200 min & no roaming for under $120/month including texting on one of the phones. Coverage is as good as AT&T which I left because of very poor customer service.
  • Net10
    Love net10 since I switched - only .10 min. Service is just as good if not better plus they give 300 minutes when you buy phone - so cheap phone is free or in my case, nicer phone is a DEAL... Say what you want but I'm not paying $100+ month for a cell phone.
  • Metro PCS is Good
    I had Metro PCS for 3 yrs and switched to Verizon this year. I switched to have better service when I travel. However, I will be switching back to Metro PCS because I do not travel as much and Verizon is extremly expensive
  • Calling
    T-mobile has a customer loyalty plan for $50. Unlimited calling. You have to be with them for a while but I think there is no contract.
  • Family Plan
    How is this compared with family plan? And is it worth the cost to have unlimited mobil internet access? I'm sure TV show streaming is not allowed.
  • T-Mobile has been unbeatable
    I never have looked at Cricket, Metro etc, but I always wondered if they had the coverage. Right now, TMO seems to be the only major carrier willing to EARN my small business wireless by their lower price points and superior customer service. I had Verizon, but I noticed almost no difference in coverage for the 32 phones we have in the field for 6 months now. Plus our Verizon "rep" NEVER got back to us for anything. Our T-Mobile guy has been awesome thus far and will save us close to $30,000 over 24 months. Really cell phones are a commodity to me. If the price was right, I would more than likely switch again. But I must say, we are getting an awesome deal now and I would hate to give up customer service unless it was HUGE amount in savings.
  • Cell phone
    my bet is to use MetroPCS. They have a flat fee per month that varies from
    $30 to $50 per month. I got the $45 plan for my daughter and it is excellent. No extra fees ever just $45 month after month.
  • SMALL GUYS ARE GOOD!
    As someone who had a 1 yr contract with a now out of business cell service provider, than Sprint (HORRIBLE! and more problems AFTER the contract ended with constant monthly charging) - we tried Virgin. It was fine (it does use Sprint towers) for our needs at the time, and we were determined to NEVER be suckered into another contract. We are now with Cricket and love it! no problems. We travel and until the entire US is covered, there are areas that we could incur roaming charges, that's OUR responsibility to find out before making a call.

    I say : GO little guys! Its what we need in this market. Cricket family plan for 4 lines UNLIMITED everything is still less than $120 month. Try THAT with the big guys.
  • Cheap cell phones
    You get what you pay for and it is also true with these no plan phone providers.
    They have limited coverage and service.
  • MetroPCS in Sacramento
    The coverage in Sacramento appears excellent. Go to metropcs.com and look at the tab labeled coverage. The blue area indicates the coverage area. The darker blue is excellent coverage and the lighter blue indicates good reception.
    You can also look up the PCS store at this same site and call them or go in and look at their wall chart and ask them how the reception is.
    According to the internet map it looks like a good value.
  • Boost Mobile vs Metro PCS
    I live in Sacramento, CA and am a heavy cell phone user looking to switch to one of the unlimited plans. Any recommendations for my area?
  • Boost Mobile
    i bought a phone and one month unlimited calling on Friday and by Monday I returned the phone and lost 50 dollars on the boost card..I had no connectivity in my home,many dropped calls and poor customer service.You get what you pay for
  • Pocket
    In Ct. I use Pocket. $45 per month with unlimited local and long distance inc. Puerto Rico, text, web and directory assistance. They do have a small coverage area right now but i don't travel much anyways. Just payed for the phone and got the first month free. Can't beat it.
  • Virgin Mobile
    I have been using VM for about a year. I pay $15/every 90 days (use a credit card to auto top-up). The calls are then $.20/min. Obviously, I don't use this except when I need to. I "gab" on my VOIP phone at home. VM serves my needs perfectly. The also have a plan for $6.99/mo where the mins are just $.10 ea. unlimited, no contract.
  • Metro PCS
    I got MetroPCS for my daughter because her cell bill fluctuated wildly each month on Verizon. Metro has unlimited texting including pictures. unlimited talking and unlimited internet connection.
    There is no contract to sign it is just month to month billing.
    The only negative is that they don't subsidise their phones, however when you buy the phone from a metro store or online your first month is free, so you do save $45 on the cost of the phone.
    Actually the bill starts at $35 per month for more limited plans.
    You should look up their map, on the internet, and find out what the coverage is in your area and the areas you travel to frequently.
    I am really satisfied. I have no additional fees ever.
  • Metro PCS
    I got MetroPCS for my daughter and it includes unlimited talk, messaging, and internet connection for $45 a month.
    There are no additional unexpected fees that just show up.
    Of course the coverage is somewhat limited, you have to look at the map and see what the coverage is in your area and in the area that you will be traveling to. This company appears to be straight forward.
  • Boost
    I have a Boost phone and the plan offers one cost. This is great for when someone is trying to maintain a budget. My wife went with a package deal and had to sign a two year contract, but in order to get the unlimited minutes that came with the Boost plan, we would have to pay double and sign another contract. I have not had any issues with lost calls just a lot of commercials texts from Boost. Outside of the commercial text messages, I only have positive experience with Boost.
  • cell phones
    I have had Virgin mobile pay as you go for 5 years...very satisfied. One time I left my phone in the rain, and they replaced it FREE
  • Cell Phone Quality Carrier
    Clark,
    You all ways say about the Ponzi schemes that, "If its too good to be true, it probably is". I would have to imagine that paying 1/2 the price for these phones will result in 1/2 the customer service, 1/2 the coverage, and twice the dropped calls. My research suggests this. I'd like to hear more on this.
  • Virgin Mobile Unlimited Plan
    It appears Virgin Mobile's Unlimited plan is 400 anytime, unlimited after 7pm and wknds, am I missing something? Boost is unlimited everything anytime, seems significantly better.
  • Cellular 2nd Tier
    Often you will find that the 2nd Tier Cellular providers are using Sprints or some other Tier 1 providers Network. Boost, Virgin Mobile both use Sprint's Network.
  • bottom not near
    remember, the marginal operating cost to a cell phone company of adding the next customer is the monthly cost of mailing you your bill-42 cents.
  • Boost Mobile "Unlimited" plan
    I recently got Boost Mobile's "Unlimited" plan and it turns out there are a few limited... The restrict access to various websites that are data intensive. I don't know if that's the norm... but other than that (and a few dropped calls) it seems to be an ok service
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