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!