Best Cell Phone Plans

Verizon's the best, but T-Mobile costs less

One source dubs Verizon Wireless (*Est. $40 per month and up) "the Cadillac of cellular." Reviews agree it is easily the best cell phone service money can buy. But like a Cadillac, it doesn't come cheap, and Verizon Wireless's customer service has managed to infuriate many customers and some prominent critics. If you're one of the furious -- or you just want to save some money on your cell phone bill -- reviews recommend checking out T-Mobile (*Est. $30 per month and up) instead.

Verizon Wireless sweeps nearly every award in nearly every test and survey listed in Our Sources. It outclasses all other nationwide carriers in terms of call quality (J.D. Power and Associates), 3G data speed (PC World and Wired) and coverage (PCMag.com). Verizon Wireless also gets high scores for customer service in several major customer surveys, including those at J.D. Power and PCMag.

But other reviewers use words like "evil" and "sneaky" to describe Verizon Wireless's business practices. The Federal Communications Commission started questioning Verizon in late 2009 after The New York Times' David Pogue and many other customers complained that the company charged them $1.99 every time they accidentally hit an awkwardly placed arrow key on their phones, thereby launching a preset web function they didn't want. (Verizon replied that it did no such thing.) The FCC also questioned why Verizon Wireless doubled its early-termination fee for smartphone users to $350. Verizon replied that it charges the big fee to recoup the money it spent -- on advertising, sales commissions and store costs -- to sign up the customer in the first place.

In December 2009, some Verizon Wireless smartphones suddenly quit allowing users to set their search boxes to Google, Wikipedia and other services. Now, the only option is Microsoft Bing -- which paid Verizon a rumored $500 million to block the others, reports The Register, a U.S./U.K. tech site.

"Maybe Verizon heard that there were six people left on Earth who didn't have a reason to dislike it," Pogue says of that move.

Cost is the other major drawback: Reviewers say Verizon Wireless tends to charge more for fewer minutes. For example, its $40 Nationwide Basic plan includes 450 anytime minutes -- 50 fewer than T-Mobile's basic plan, which costs only $30 per month. Unlimited talk, text and web costs $130 per month with Verizon Wireless's Nationwide Connect plan, but $80 with T-Mobile.

T-Mobile finishes second only to Verizon Wireless in data speed and tech support ratings, and it's judged the cheapest of the major plans. Call quality can be inconsistent, though. At J.D. Power and Associates, T-Mobile ties Verizon for first-place call quality in the western U.S., with above-average ratings in the Southwest, but quality worsens in other regions. PCMag.com readers downgrade T-Mobile's call quality, too, although they say it's the best of the major carriers when it comes to customer service.

If you're sick of being locked into contracts for years, T-Mobile is a particularly attractive option. It offers a full array of no-contract Even More Plus plans (in addition to its no-credit-check prepaid plans) ranging from a basic 500-minute voice plan (*Est. $30 per month) to an unlimited talk, text and web plan (*Est. $80 per month), with family plans available. You'll have to pay full sticker price for your phone, though, unless you commit to a two-year contract Even More plan (starting at *Est. $40 per month for 500 minutes).

AT&T (*Est. $40 per month and up) and Sprint (*Est. $30 per month and up) vie for the title of worst carrier in most of our sources' ratings. Neither can match Verizon or T-Mobile for call quality or customer service, according to review after review.

Sprint takes last place in surveys at J.D. Power and PCMag.com, with the lowest scores of any nationwide carrier for call quality and customer service. Sprint earns the No. 3 spot on MSN.com's 2009 Customer Service Hall of Shame (Sprint's third year in the top three), with just over 40 percent of respondents rating its customer service "poor" -- about twice as many as AT&T, T-Mobile or Verizon Wireless. Sprint does show one bright spot in reviews: It edges ahead of AT&T in 3G speed and reliability tests at Wired and PC World (although Verizon Wireless still wins those tests).

However, AT&T wins Gizmodo.com's more recent 3G speed test, beating Sprint, T-Mobile and Verizon Wireless. But AT&T's call quality, customer service and coverage can't compete with Verizon Wireless and T-Mobile, according to customer surveys by J.D. Power, PCMag.com and others. Still, AT&T has had a very obvious ace up its sleeve: Through 2009, it has been the sole U.S. carrier for the iPhone. Despite its below-average scores in almost every category in PCMag.com's survey, customers do say AT&T offers the best handsets.

U.S. Cellular: Best regional carrier

While Verizon and T-Mobile are usually ranked highest overall nationally, reviewers say U.S. Cellular (*Est. $40 per month and up) is a particularly strong carrier in the 25 states it serves, mostly in the Midwest. Its boasts the best call quality in the North Central region for the eighth straight survey period at J.D. Power and Associates, besting even top-rated Verizon Wireless. U.S. Cellular offers better-than-average initial connections, with little static and few late or failed voice messages, according to J.D. Power.

However, customer service is hard to judge: U.S. Cellular isn't included in any major national customer service surveys, and user ratings at LetsTalk.com are mixed. Some users love their U.S. Cellular service, while others report frustrating problems with billing, roaming and more.

Roaming is free if you buy one of U.S. Cellular's National Plans (starting at $40 per month for 450 minutes). U.S. Cellular contracts with the Verizon Wireless network for roaming, so its voice service map nearly blankets the nation. Wide Area Plans (starting at $40 per month for 700 minutes) offer more minutes for the price, but you'll pay 69-cent-per-minute roaming charges outside of your hometown and nearby cities.

Another drawback: U.S. Cellular's 3G mobile broadband coverage is very slim, covering parts of Iowa, Illinois, Wisconsin, North Carolina and a few more scattered areas in the East. Elsewhere, U.S. Cellular runs on the slower 2G network.

Still, U.S. Cellular offers the best reception in some areas. And it does include a few price perks: For example, all incoming calls, texts and pictures are free for two-year contract plans, so you only get charged (or use minutes) for those you send. U.S. Cellular also offers prepaid plans starting at $6 per month plus 15 cents per minute.