A household of four can easily pay $200 a month or more on a postpaid plan from one of the major carriers. Many people could get similar coverage for half that, or less, by switching to a prepaid plan or a smaller carrier that rents space on the same network.
Key Takeaways
- MVNOs (mobile virtual network operators) sell service on the major carriers’ networks, often at lower prices.
- Your coverage area is generally the same as the host network, but data may be deprioritised when the network is busy.
- Check how much data you actually use before choosing a plan; many people pay for more than they need.
- You can usually keep your number by porting it, but pay off or check any device balance first.
What MVNOs and prepaid plans are
The major carriers own the towers. MVNOs lease capacity from them and resell it under their own brand. Some are owned by the major carriers themselves; others are independent. Prepaid simply means you pay at the start of the month instead of being billed afterwards, and there is usually no credit check or long contract.
The trade-offs
- Deprioritisation: during congestion, the host network may slow MVNO customers before its own postpaid customers. In practice many people never notice; in crowded venues or busy areas you might.
- Fewer perks: streaming bundles, phone upgrade promotions and in-store support are less common.
- International roaming and hotspot limits vary by plan.
- Customer service may be online or by phone only.
Work out what you actually use
Open your phone’s settings and look at cellular data usage for the past few months, or check your carrier account. Many people who pay for unlimited data use less than 10 to 15GB a month, especially if they are on Wi-Fi at home and work. If that is you, a smaller plan could cost a fraction of the price.
Check coverage where you live
Ask which network the MVNO uses, then check that network’s coverage map for your home, work and commute. If your current phone works well on a particular network, an MVNO on the same network should too.
Make sure your phone is compatible
- Your phone must be unlocked to move it to another carrier. Carriers generally unlock phones once they are paid off and meet their policy requirements; ask yours.
- Check the new carrier’s compatibility tool with your phone’s IMEI number.
- Many plans support eSIM, so you can switch without a physical SIM card.
How to switch and keep your number
- Do not cancel your old service first.
- Get your account number and a number transfer PIN from your current carrier.
- Sign up with the new carrier and choose to transfer your number.
- Your old service usually ends automatically when the transfer completes.
If you are on a family plan, each line can generally be moved separately.
Watch for remaining device balances
If you bought your phone on an instalment plan, leaving may make the remaining balance due immediately, and you may lose monthly promotional credits. Compare the total cost of switching now versus waiting until the phone is paid off.
Example savings
A family paying $180 a month for four unlimited lines that each use about 8GB might find MVNO plans at a combined $80 to $100 a month. That is roughly $1,000 a year. Prices vary widely, so compare current offers.
Frequently Asked Questions
Will my calls sound worse? Voice quality is generally similar on the same network. Data speeds may vary during congestion.
Can I go back to a major carrier? Yes. You can port your number again.
Is prepaid only for people with bad credit? No. Many people choose prepaid for lower costs and flexibility.
The bottom line
Check your real data use, find an MVNO on a network that works where you live, make sure your phone is unlocked and port your number. For many households it is one of the easiest bills to cut.
