When you’re in the process of getting a cell phone or mobile phone, there are two primary costs you need to consider—the price of the phone itself and the cost of the service.
Cell phone or mobile phone service providers describe the comprehensive group of possible service options and the amount you use them as ‘cell phone use’. What you choose from the available options gets compiled into what the industry calls your ‘plan’ and directly influences your bill.
Depending on the service provider, some options may be unlimited, whereas others may have a cap. As expected, the unlimited services usually are more expensive and can sometimes include throttling.
How does cell phone use work?
When you sign up for cell phone service, you need a device and a plan. Assuming you have the device part worked out, let’s look at the types of plans available. Right now, there are two major types—a subscription-style monthly plan and a pay-as-you-go style plan.
Both plans work in a similar fashion where different services like talk and text or data are added to your plan in quantities lumped into blocks. Blocks like gigabytes of data or minutes of talk time. Even defined amounts of texts. The final list in your plan of services with quantities represents your cell phone use and over what period it’s valid.
As a customer, you can choose to alter the list of services and the allowable quantity of each service whenever you like, as long as it’s within the service provider’s guidelines. Just make sure you understand what you can and can’t do before you sign up.
It’s also important to note that cell phones use a SIM card to hold your account information. Your plan details, phone number, and even some of your data can be stored on it. That means you can quickly transfer all of your account details to a different device just by moving your SIM card to the new device.
How does cell phone use work on a subscription plan?
A subscription-style plan is a popular option because it often can be used in a contract format, including payments for a device spread out over the contract term. Typically, various services complete with quantities per month are added to your plan—some with potential penalties or additional charges for overages.
Also available as part of the subscription-style plan are unlimited packages. My favorite is unlimited data. However, make sure you read the fine print. Some service providers redefine ‘unlimited’ to mean high data speeds up to a certain amount of data, after which your connection gets throttled down to a slower speed.
It’s technically unlimited but with strings attached. If lots of data is essential to you, look for the service that gives you the options you want.
If you’re a big streaming services data consumer, restrictions can be a real bummer. However, not all is lost. Often you can find options for unlimited streaming services that will satisfy your sports or cat video needs. I’ve even seen some great options for using the hotspot feature on your phone if you’re a mobile user and require it.
A disadvantage of subscription plans that can catch people is when they’re on a contract that includes a device. Then, if the device fails, gets damaged, or gets lost before the end of your agreement, you can be stuck paying for it with no device.
How does cell phone use work on a pay-as-you-go plan?
The pay-as-you-go plan is excellent for several use cases. For example, if you have little need for some services and have good WIFI access, it may not make sense to sign up for a monthly bill. Instead, you can pick up a late model device, either new or used and still have excellent access for a lot less money.
Different options and quantities of each option are typically available in the same manner as the subscription option. In addition, they can usually be added or removed from your plan as you like as long as the service provider doesn’t have any conditions or restrictions.
You may think that a pay-as-you-go plan might not fit your data or streaming needs, but you shouldn’t dismiss them based on that reasoning. As an incentive, service providers will sometimes allow access to streaming services for free as part of your pay-as-you-go plan. Make sure you know what all the options are before you pick.
If you weren’t already aware, pay-as-you-go phones are how the famous ‘burner’ phone works. Someone buys a very cheap device with limited service and a random unique phone number for discretionary use. Then, when the data runs out, you can buy a new card for it or toss it out if need be. Other less scrupulous folks have a collection of phones so they can have multiple active numbers at a time.
People also like them for emergency phones. You can buy a block of minutes and leave the phone in your glove box during trips in case you need to call a tow truck or emergency services. Make sure that you understand whether or not the minutes you bought expire before your trip, so you don’t get caught without it.
What are the different types of cell phone use
There are many types of cell phone use defined by service providers, but some of the most common with the quantities most often used for billing are listed in the table below. Unlimited options exist in almost every category but will be up to the discretion of your service provider.
| Service Type | Quantities |
|---|---|
| Talk & Text | Minutes & Number of Texts per Month |
| Long Distance Charges | Minutes |
| Data | Megabytes or Gigabytes |
| Streaming or Preferred Streaming Services | Gigabytes |
| Tethering of Hotspot Data | Megabytes or Gigabytes |
It’s also important to inquire about discounts when you’re going through the sign-up process. Frequently, service providers will carry discounts for certain groups of people that could save you a lot of money. If you don’t see a group that applies to you in the list below, don’t be afraid to ask your service provider what discounts they offer.
Groups with possible discounts
| Military |
| Teachers |
| First Responders |
| Students |
| Nurses |