There are probably millions of people in the U.S. that could save a lot of money by switching to a different plan offered by their existing cell phone carrier. For example, plenty of people pay for expensive plans with unlimited data, even though they only use a few gigabytes of data each month.
Recently, I angered a lot of people when I said Google Fi is generally too expensive for me to recommend the service. Several commenters argued I was wrong. Some of the commenters were polite. Others called me an idiot. Commenters often mentioned how much they used to pay for service from a major carrier and how much they saved by switching to Google Fi.
In many cases, commenters appeared to have purchased the wrong plans when they used major carriers. They were paying for data they didn’t need. Since Google Fi has a pay-for-what-you-use pricing structure, Fi subscribers basically cannot be on a plan that is mismatched with their data use.
Unsurprisingly, a person who barely uses data can probably get a better rate on a Google Fi plan than she can get on a high-data plan from Verizon. But Verizon also offers plans with small data allotments. We should make apples-to-apples comparisons when we can.
Below, I share excerpts from previous comments and my follow-up thoughts.
Carriers create confusion
People who are on mismatched plans aren’t idiots. Many carriers like it went customers pay extra money for unnecessary amounts of data. Instead of alerting subscribers who are paying for too much data, carriers often take steps to encourage customers to over-purchase data. I call the cell phone industry a confusopoly for a reason.
Finding plans that fit
As mentioned earlier, one way to ensure that you’re not paying for data you don’t need is to choose a carrier with a pay-for-what-you-use model (e.g., Ting or Google Fi). That said, I think most people can find better prices with carriers that use conventional pricing structures.
If you know how much data you typically use (or have records of data use you can look back on), you can probably figure out how much data you’d like your cell phone plan to offer. If you’re unsure about your data use, I suggest starting small. Choose a plan with the smallest amount of data that you think might be adequate. Experiment with that plan for a few months. Add more data if the initial data allotment you started with turns out to be insufficient.