This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The End of Smartphone Contracts

There are other alternatives as well. You can trek over to Wal-Mart (WMT - Get Report), which resells T-Mobile service with a twist: If you don't make many calls, opting to use your smartphone mostly for data, it offers an unlimited data plan for $30 per month. It also throws in unlimited SMS and 100 minutes of circuit-switched calling per month.

It doesn't take a mathematical genius to show that with this $30 unlimited data plan such a customer would be saving even more than the $1,080 example with StraightTalk above. Another reseller offering similar deals to StraightTalk is MySimpleMobile.

You can buy unlocked smartphones from Google (GOOG - Get Report), Apple (APPL) and Microsoft.

Yes, they cost $200-$450 more than they would if you took the subsidy, but as I show in these examples you make that back in about a year, typically less.

There are additional benefits as well. Buying an unlocked phone, you can pop any SIM card into it when you travel abroad. This could save you literally hundreds of dollars per day when you're on the road.

Starting sometime down the road even here in the U.S. the benefits of an unlocked phone could be even greater, even if you never travel abroad. Already SMS is free for whomever bothers signing up with Google Voice. So you don't need to pay AT&T or Verizon $20 per month for the privilege. The fact that the U.S. consumer hasn't bothered to do this to a greater degree speaks to the laziness and ignorance of the U.S. consumer.

More importantly, voice and video communications are also becoming essentially free with variants of VoIP (Voice over Internet Protocol). Applications ranging from Skype to Google Voice to GoogleTalk to iMessage to FaceTime now do much of why you otherwise pay a carrier $50-$70 per month to perform in terms of "unlimited domestic calling."

The new VoIP alternatives are not limited to domestic calling. I don't think I have paid a penny for an international call in five years using these various calling programs that are free.

What does this mean over the next one to two years? Starting soon, you might want to buy data-only plans for perhaps $30 or less, per month, as you don't need any calling plan or SMS plan. This way, you will most likely save even more than $1,080 over two years, compared to today's pricing of "all-in data/SMS/voice" plans from AT&T and Verizon.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
GOOG $523.40 0.00%
MSFT $44.40 0.00%
S $4.48 0.00%
T $35.73 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs