



Choosing a cell phone plan can be confusing.



Carriers often display plans on separate pages, use fancy terms, or bury hidden costs in their terms of service.

Our plan comparison tool takes the guesswork out of finding the best deal, but how do you know which plan is the best plan for your needs? And what should you look for?

Most mobile phone plans share a number of similar options, including an allotment of minutes, data, and SMS messages.

They’ll often also include a set of common calling features, such as voicemail, caller ID, group calling, and call waiting.

But what about everything else? What makes one plan better for you than another?

This guide answers all the important questions you might have.

Payment Considerations





The type of plan you choose will determine both when you pay for service and how you are billed.

Plans typically fall into one of three types:

Prepaid or pay-as-you-go plans where you pay in advance

or plans where you pay in advance Monthly plans where you pay at the end of a monthly billing cycle

One plan type isn’t automatically better than the other. Each option offers unique strengths and weaknesses you should consider to find the best fit for you. It all depends on what you need in a plan and your financial situation.

Prepaid Plans

As the name suggests, with prepaid service, you pay in advance for the features you want to use.

While you’ll still likely pay more for prepaid than monthly services, it’s not as expensive as it once was.

Benefits to prepaid service include:

No credit checks

No early termination fees

No worries about extra charges

The ability to tailor your bill to meet your needs and budget

Of course, there are aspects of prepaid that might not work for you either...

Prepaid services often offer smaller data allowances than monthly plans. Adding extra data to your allotment is often more expensive as well.

Some prepaid carriers do not let you use your phone while travelling either. However, if you have an unlocked phone, you can pick up a different prepaid SIM to use at your destination.

You can either you either pay upfront for an allotment of minutes, data, and messages -- often on a monthly basis -- or you can buy credits that are added to your account.

Two Types of Prepaid Plans: Pay-As-You-Go and Bundles

With credit-based prepaid plans, you spend credits each time you place a call, send or receive a message, or use data. This is also known as Pay-As-You-Go (PAYG) phone service.

The allotment based plans are known as bundles or bundle plans. These include a set amount of minutes, data, and message for a flat rate.

How you use your phone will determine which type of prepaid service is best for you.

Bundles often feature lower per-feature prices compared to credit-based plans. However, your minutes, data, and messages also expire at the end of your billing cycle if you don’t use them.

If you don’t use all your minutes, data, and messages, you’ve paid less for the features, but you’ve also paid for features you didn’t use.

Pay-as-you-go rates are often higher on a per-feature or per-credit basis, but they rarely expire as long as you add credits to your account regularly.

For light users, this is often a better option as you’re not paying for things you do not use.

Monthly Plans

This is the standard type of plan offered by most major carriers. You use your phone and they bill you each month.

If you go over the minutes, texts or data included with your plan -- or use services not included with your monthly plan -- the additional usage is tacked onto the next bill.

A few years ago, monthly billing was the way to go for most.

However, smaller carriers and prepaid providers have improved service and prices since then making the choice less clear.

Two of the biggest reasons to consider a monthly plan are:

Multi-line discounts: Most major carriers offer substantial discounts for having more than one line (one phone number) on an account. This makes getting a phone for the whole family much more affordable.

Most major carriers offer substantial discounts for having more than one line (one phone number) on an account. This makes getting a phone for the whole family much more affordable. Larger/Unlimited data packages: Unlimited data and larger data pools are often only offered on monthly plans. These are ideal if you’re not within range of Wi-Fi often or like to stream music, movies, or TV shows to your mobile device.

The biggest downside to monthly billing is that it often requires a credit check and contract. If you don’t have great credit, you’ll face a hefty deposit to get started.

While most carriers offer refunds on your deposit, the terms are often incredibly specific. One late payment and you could lose your deposit.

Phone Needs





Most carriers offer shiny new phones at a discount or let you bring a phone you already own, assuming it’s compatible.

But whether you buy a new phone or not could impact your plan choices. So considering the best approach is essential to getting the best value for your new service plan.

Don’t Need a New Phone or Want to Bring Your Own?

While most carriers might not make it obvious, many offer plans that allow you to use your own phone with their service. These are known as SIM-only or Bring Your Own Device (BYOD) plans.

SIM-Only plans don’t include device financing or subsidies. So you’re on your own to buy an unlocked phone to use with the service find an unlocked phone -- be that from your carrier, online, or at your favourite electronics retailer.

The advantage to SIM-Only plans is that they are often priced lower than prepaid or monthly plans that include a phone.

SIM-only plans are available in both monthly and prepaid payment types, allowing you to pick the payment type you prefer.

However, depending on the carrier you choose, they may still require a credit check and contract to establish service.

Upgrade Your Phone or Buy New Phones Using Device Subsidies

If you’ve seen ads online or on television offering you the latest smartphone for next to nothing, you’ve seen phone discounts -- or phone subsidies -- in action.

Essentially, the carrier offers you a substantial discount on a new phone. In return, you agree to stick with that carrier for up to two years. If you cancel before that -- or can’t pay your bill -- they’ll recover their subsidy with an early termination fee.

While this seems like a good deal, in most cases, you’ll get better prices and enjoy greater flexibility if you buy your phone upfront.

If you must use a subsidy to get your phone, ALWAYS check the terms.

If they add interest to the cost of the phone or tack on additional financing fees, do the math and be sure you’re getting a good deal.

Phone Leasing or Early Upgrade Programs

Phone leasing is a relatively new concept with carriers but works very similar to how it works with cars.

You pay each month for your phone just like if you had financed it. Most leases have one- or two-year terms.

At the end of your term, you can return it to the carrier for a discount on a new leased device or pay a reduced lump sum to keep it based on how much you paid toward the phone’s price during your lease.

Many carriers use different names for their phone leasing programs.

One of the most popular names is “early upgrade plans.”

But take a minute to read the terms of the contract -- it’s still just a lease program in disguise.

Lease terms vary depending on the carrier but most require you to keep the phone in like-new condition in order to trade it back in.

Some carriers include phone insurance with your lease fees, others don’t.

So read the fine print to understand the true risks and costs of your phone lease or early upgrade agreement.

Regardless of the carrier, unless you upgrade every time a new phone is released, you’ll probably save money over the long-term by purchasing a device outright.

Recommendations

So now that you understand the different options, which should you choose?

It will mostly depend on the number of phones you need and your budget.

If you only need a single line of service, we recommend buying your phone outright.

You’ll spend a bit more upfront over taking a discount or financing, but spend far less in the end due to cheaper plans and more flexibility.

If your budget doesn’t allow that shiny new model of phone you have your eyes on, buying an older model upfront and pairing it with a SIM-only plan can reduce your upfront costs significantly while giving you access to a capable smartphone. While today’s high-end releases are super powerful and sleek looking, the high-end phones from a year or two ago will still suit the needs of the average person.

If you need multiple phones -- like when you’re buying phones for the whole family -- decisions get tougher…

Buying multiple high-end phones upfront is out of the question for the budgets of many buyers.

In these cases, subsidizing or leasing a phone from your carrier are likely the best approaches.

Just be careful...

Should the phone take a dip in the pool or smash to the ground, you might be left on the hook for both the price of the phone and the monthly service fees for the rest of your contract term.

Related Guide: How to Choose the Best Cell Phone

Carrier Options





In the early days of mobile phones, carrier coverage didn’t overlap much. This meant that you had only one or two options in your area for mobile phone service.

These days as carriers expand networks, offer coast-to-coast coverage, and use deals with other carriers to offer service around the world, the number of options you have to choose from might feel intimidating.

Not to fear.

By looking at a few important factors, you can begin to limit your options and find the best deals in your area.

Big Carriers vs Small Carriers

Many smaller carriers are what are known as mobile virtual network operators or MVNOs -- though there are a few small regional carriers left as well.

MVNO’s typically use the same networks as the big carriers. They just lease access to the network and resell it to you. There are even some MVNO’s which are owned by the major carrier.

So, in most cases, coverage is similar to what you’ll find with the bigger names.

The biggest downside to smaller carriers is that you’ll often find fewer phone options in their stores and limited customer support options.

Some smaller carriers use email or online forums while others only allow phone support.

Also, depending on the network that the carrier uses, you might also see slower data speeds than major carriers in your region.

If these differences are important to you, a big carrier might be the best choice.

However, for many, smaller carriers offer substantial savings and comparable service quality.

Signal Strength in Your Area

There’s nothing more frustrating than missing calls and messages or having to find that magic corner on the second floor of your home or office to send a text.

You want a carrier that offers solid coverage in the areas you frequent.

But how do you know which carriers have the best coverage near you?

One way is by checking the coverage maps offered by carriers.

These offer a general idea of what you can expect but keep in mind that these maps only estimations based on readings in nearby areas. Just because their map says you should have great service doesn’t guarantee you will.

From thick walls to network congestion there are endless factors these maps can’t account for.

Instead, we recommend checking one of the third-party coverage maps -- such as OpenSignal or RootMetrics.

Better still, you can check with friends or ask in local social media groups about which carriers they use and any problems they might have with coverage.

By checking a few different sources, you can see if service might be inconsistent in your area.

Related:Network Coverage Guide

Customer Service Options and Availability

Even if you’re confident in your tech abilities, there’s a good chance you’ll need help with your phone or account from time to time.

When this happens, not having support available could be the difference between a quick resolution and a frustrating few days without your phone.

Many smaller carriers and low-cost carriers have limited support options.

At a minimum, we recommend choosing a provider that at least offers real-time chat support.

This means you can resolve issues quickly and not have to wait for replies to emails or sift through hundreds of forum posts trying to find an answer.

If you expect you’ll have questions or need help with your phone or service, we highly recommend choosing a carrier with telephone support (preferably toll-free) and, ideally, with a retail store in your area.

This means you can skip the hassle of waiting on hold or trying to explain your issue through chat and swing by the store instead.

Tip: Check out our carrier summaries to compare the support options offered by the carriers in your area.

Single vs. Group Plans





Group and family plans are one of the easiest ways to save on your monthly mobile bill. In many cases, the people on the plan don’t even need to live at the same address.

This makes it easy to add kids in college, elderly parents, or even a trusted friend or coworker to your plan and split the costs of your phone service.

Terms and conditions vary. However, in most cases, multi-line plans work in one of two ways:

Shared allotments: With these group plans, everyone’s use comes out of the same pool of minutes, texts and data. This is ideal in family situations where some people might use a lot of one feature and others very little. For example, your kids love to text with their friends and stream video but you might just want a phone to make calls with. With a shared plan, they’re not sitting with wasted minutes on their plan, and you’re not required to keep a ton of data you’ll never use. Everyone shares the same set of features.

Per-line data: With these plans, each line often shares a pool of texts and voice minutes but has an individual data bucket. These plans are useful if you use little data or want better control over how much data each person can use.

In most cases, group plans offer better discounts for each line you add.

If you only need two lines, you might save money with individual lines through a prepaid provider. Prepaid plans are often cheaper than monthly plans and the group plan discounts for two lines are often very small.

So with a bit of shopping around and comparing plan options, you might be able to find a cheaper prepaid service than the monthly group plan will cost.

However, for three or more lines, group plans are almost always the most affordable and flexible option available.

Related Guide: The Best Family Cell Phone Plans

Related Guide: The Best Prepaid Cell Phone Plans

Voice Minutes





If you plan to use your phone regularly to make or receive calls, you’ll want to make sure you have enough minutes to use your phone without worry.

If you already have service through another provider, check your past three bills to see how many minutes you used. This should give you an idea of what to look for with a new service provider.

If you’re new to mobile phones, choose an option that seems slightly more than what you might need. In most cases, you can downgrade your minutes later if you’re not using them. And paying for a slightly higher plan is often cheaper than paying for any amount of overages.

If you plan to talk a lot -- or have kids who love to talk on your plan -- consider an unlimited talk plan. Then you’ll have zero worries when the bill rolls in.

With prepaid phones, using all of your minutes -- or credits in the case of pay-as-you-go -- could mean you’re unable to use the calling, messaging, and data features of your phone until you add more credits to your plan or renew at the end of your billing cycle. On monthly plans, you’ll likely switch to per-minute billing if you use your monthly allotment. This can result in a scary surprise when the next bill rolls in. Even if the carrier adds minutes in bundles, they’re likely at a higher rate than if you had signed up for a higher tier plan to begin with.

Calling Options





How calls are billed varies by the plan and carrier.

If you’re only calling in your local area, you should have no worries regardless of the plan you choose.

However, if you’re calling friends and family on the other side of the country or abroad, you’ll want to look at the carrier’s calling terms.

Many carriers now include nationwide calling as a basic feature on most plans.

If the plan you’re considering doesn’t include it, check the add-ons or bundles to see if you can add it for a reasonable fee. Even an hour of long distance calling will exceed the cost of the monthly add-on for most carriers.

Virtually every carrier charges additional fees for long distance international calls.

If you plan to call abroad often, choose a carrier with a flat-rate international calling plan.

These include a set amount of minutes and texts to a specific country or set of countries at a substantial discount over the regular per-minute rates.

Just keep in mind that if you don’t use all of your monthly minutes, you’ll likely lose them at the end of your billing cycle.

Roaming Fees





Most major carriers now offer nationwide coverage and service but some smaller or regional carriers still use calling zones to determine how to bill your call.

If you’re making calls from your home area, there isn’t much to worry about.

However, if you travel often you’ll want to check the terms of service.

You can find the roaming details for each carrier in our carrier summaries.

If your travels take you outside the country, you’ll also want to consider international roaming fees.

Many carriers charge extra fees for using your phone service in other countries. And although some carriers automatically suspend roaming service after you reach a certain bill amount, these limits are still high enough to stress the budgets of the average person.

We recommend choosing a carrier that offers flat-rate travel passes in regions you frequently visit.

These allow you to either use your standard allotment of minutes, texts and data or give you a dedicated allotment for use while you travel.

You can also consider a travel SIM or pick up a prepaid SIM when you reach your destination.

NOTE: Some prepaid carriers do not support international roaming. In this case, you’d be without service while travelling unless you swap out your existing SIM for a travel SIM or pick up a prepaid SIM that offers service in the area you’re visiting.

Data Considerations





Mobile data use continues to rise as more people use smartphones and network speeds improve. If you’re looking to keep your phone costs manageable each month and enjoying your mobile phone to its fullest, choosing the appropriate data plan is essential -- especially considering that Canada has some of the most expensive data plans in the world.

But before we talk about how much data you might need, let’s look at the different network types and data speeds available. This will provide an idea of what you can do with the data included in your plan.

2G, 3G, 4G, LTE, 5G: What’s the Deal with Data?

These labels all refer to the type of network the carrier uses. While the specifics of how they work aren’t important, they can give you an idea of what to expect when using your mobile data.

Network types include:

2G: Basic data, mostly good for voice calls and text messages. Not compatible with streaming or browsing the web. Most carriers are slowly phasing out their 2G networks.

3G: As the replacement to 2G, this network is slower than 4G but still fast enough for basic internet use and light streaming. It is more common outside urban areas.

4G: Faster than 3G, these networks can stream HD video or audio and work similar to a home or business broadband connection. These networks are common in urban areas though carriers are adding 4G coverage in rural regions rapidly.

LTE: As the next stage of 4G, LTE offers yet another speed boost and improved reception on congested networks or in densely populated areas.

5G: While still in its early stages, this will be the replacement for 4G LTE in the coming years. It offers further speed boosts, lower latency, and improved indoor reception. However, at the time of writing, there are very few 5G networks in operation.

Real-world usage will vary based on your phone model, location, network congestion, and other factors.

For a better idea of what to expect regarding network speeds in your area, we suggest consulting OpenSignal. Their data comes from real people using their app in your area instead of estimates. This means it should line up well with the speeds you will experience.

How Much Data Do I Need?

Much like minutes, the amount of data needed will vary from person to person.

In general, the more you use your phone for things other than calling or texting, the more data you’ll need.

Also, while faster mobile speeds provide better video quality and more options in how you use your phone on the go, it also means you can use data -- and potentially rack up hefty overage fees -- quicker as well.

As one of the most expensive parts of the typical mobile phone bill -- especially if you exceed your data allowance -- this is one of the most important considerations when choosing a plan.

Most data plans are measured in gigabytes. One gigabyte (GB) equals approximately 1000 megabytes (MB).

With 1GB you can:

Receive 500 to 1250 emails with typical-sized (800KB to 2MB) PDF attachments

Download 166 basic apps

Download 16 basic game apps

Download 2 high-quality, 3D games

Stream music at high quality for up to 7 to 14 hours depending on settings

Stream NetFlix for 3 hours at Low Quality

Stream NetFlix for 1.4 hours at Medium Quality

Stream NetFlix for 20 minutes at High Quality

Upload 500 to 2000 images to Instagram

Browse images on Facebook for 51 hours

Use Google Maps Navigation for approximately 100 hours

Send 34,000 WhatsApp text messages

Video Chat on Skype for 4 hours

Watch 68 videos on YouTube at SD quality

As you can see, how you use your phone vastly changes what you can do with a set amount of data.

In most cases, if you plan to use any data at all, we recommend opting for at least 1GB of data. While some carriers offer data packages with less data, it’s often only a slight savings over the 1GB plan.

If you use apps, social media or email frequently, we recommend at least 2GB.

Want to stream music or video or play games? We advise at least 4GB.

You can find out more information in our mobile data guide.

Tethering

This feature allows your phone to act as a mobile Wi-Fi hotspot. This means you can use your mobile data connection on your tablet, laptop, or any other Wi-Fi enabled device.

Whether you need tethering will depend on your typical usage.

However, it is handy to have if your home Internet connection goes out, you’re working on the road, or you're planning to travel and won’t have access to Wi-Fi.

Keep in mind that unless you’re tethering with another phone, you’ll use data quicker than normal. When tethering on a small data plan, be sure to watch your usage closely to avoid additional fees.

Carrier support for tethering varies. Most that support it don’t charge extra to enable the feature. However, there are sometimes limits to data speeds or allotments when tethering.

You can find the full details on tethering for each carrier in our carrier reviews.

Beware of Data Roaming Charges

As with calling, most carriers offer data service nationwide.

However, fees for international data usage are one of the leading causes of bill shock. Data roaming fees often start at dollars per megabyte.

This is particularly true of cruise ships where carriers might charge as much as $10 or $15 PER MB.

This means checking your Facebook feed or watching a cute cat video could cost you hundreds of dollars.

If you’re planning to use data while travelling, be sure to check for flat-rate add-ons or consider getting a travel SIM or prepaid SIM at your destination.

Wi-Fi Calling & VoLTE





If you live in an area with poor coverage or frequently spend time in areas prone to signal issues -- such as basement offices or dense urban areas -- Wi-Fi calling can provide a reliable signal when mobile coverage cannot.

Both VoLTE and Wi-Fi calling also promise clearer audio when calling with less compression and distortion.

You might think, “Wi-Fi calling sounds great! Sign me up!”

But check the carrier’s terms first.

Many carriers still bill you for minutes and texts over Wi-Fi. So the features are not a way to save money on your bill.

If you have a bandwidth limit on your wireless network, this means your phone could cost you twice -- especially if your carrier makes it hard to switch between Wi-Fi calling and traditional mobile networks.

Some carriers also cannot transfer calls from Wi-Fi to mobile networks seamlessly.

If you’re talking and leave the range of your router, your call might drop. While it’s far from a deal-breaking consideration, it might frustrate you if you have a weak Wi-Fi signal or frequently talk while on the go.

"Free" Perks





Many carriers attempt to attract customers by adding exclusive perks or “free” services along with their phone service.

This can range from discounts on movies, concerts, and other entertainment to free access to popular streaming services.

While these deals are legitimate, consider what they’re worth to you before you sign up for service.

If you don’t use a service often, then you might have found a better deal elsewhere. Not to mention that while the service provider might call the service free, the cost is likely hidden in your bill somewhere.

Extra Features





Most carriers offer a range of additional services you can add to your service plan. Whether they are worth it for you depends on your preferences.

Let’s look at a few of the most popular plan add-ons…

Phone Insurance

In our opinion, insurance isn’t worth it.

Back in the days of flip phones and Nokia candy bar phones, phone insurance plans made sense. You paid a couple dollars a month and if your phone took a swim or hit the ground a little too hard, you phoned up your carrier and they shipped out a replacement for next to nothing.

These days, when a flagship phone retails for nearly $1000, carrier’s can’t afford to just hand you a new phone.

This means you pay more each month for insurance. Then, when it breaks and you phone in for a replacement, they say, "Sure! Your deductible is $349.”

What’s worse is that they often then mail you a refurbished replacement, not a brand new phone.

Sure, it’s cheaper than outright replacement...

But let’s be honest, $200 to $350 for a deductible still isn’t exactly budget friendly for most of us. Especially after paying for phone service and insurance every month.

Instead of opting for insurance, we suggest picking up a good case, like an OtterBox, and stashing a little money away each month in case your phone breaks.

TIP: If you need a phone with built-in protection, rugged phone options have improved greatly in recent years. There are even smartphone models with infrared cameras and other advanced features. This means you can take your phone to the construction site or go hiking without worrying about drops, water, or dust.

Roadside Assistance

Some carriers offer roadside assistance as an add-on but the value of the service is a matter of preference.

Should you ever need to use it, there’s a good chance it will pay for itself in only one or two uses. Don’t use it and it’s money you could spend elsewhere.

However, be sure to check prices and what services are provided. Also check to see that you don’t already have roadside assistance through your car insurance, a credit card, or a club membership.

Streaming TV or Music Services

Before the glorious era of Netflix, Hulu, Spotify, Pandora, and other streaming sites, carriers tried to entice subscribers into subscribing to streaming video and music services to enjoy their favourite media on the go.

These days, they’re often more expensive than the more popular standalone services while offering less content. And, in most cases, you can only access the service on your phone or tablet.

One key difference is if you’d like to watch live TV. Many carriers are TV service providers too. So they’ll add live channels to their phone streaming services.

However, with services like Playstation Vue, Sling TV, and DirecTV NOW, gaining popularity their advantage is dwindling.

But the biggest consideration when deciding if you want streaming add-ons -- unless you’re on an unlimited plan -- is Wi-Fi availability.

Streaming video apps chew through data. So you’re paying for a service to access the shows, then paying again with your data allotment to watch them.

If you don’t have regular access to Wi-Fi where you typically use your phone, we recommend passing.

The one exception to this is carriers that offer promotions in partnership with bigger companies like Netflix or Spotify. It’s not uncommon to see carriers offer new lines with a few months of service with one of these popular streaming services included.

And you can use the service on all of your devices -- not just your phone.

Common Questions

Conclusion

Choosing the best cell phone plan is all about knowing what you need and what you can afford.

Factors to consider include:

How you plan to pay for service

If you need a new phone to go along with your new plan

How many lines you will need

Which carrier offers the best deals

How many minutes and how much data you need

Where you can and cannot use your service

Extra perks and features

By knowing what features you need, you can find a plan that is the perfect mix of utility and value -- and avoid costly charges when you run over your allotments by the end of the month.

We hope this guide helps to clear up questions you might have about choosing a phone plan.

If it has helped you -- or if you know someone who might need a little help with this -- please share this guide with others.

Next Steps

Now that you know exactly what you need in a phone plan, it’s time to find the best choices for your needs and budget.

Our plan comparison tool makes it simple to search by carrier, price, plan features, minute allotments, data allotments, and more to highlight ideal options. You can even compare them side-by-side to see how multiple plans stack up.

All without having to juggle a bunch of tabs or spend hours researching and doing the math yourself.

Disclosure: You should know that in some cases, we may receive a referral fee (at no additional cost to you) for products purchased through the links on our site. These links help support our work but they do not influence our content. Our editorial recommendations are always genuine and we try to feature only the best products and services. Why trust us?