The estimated average monthly phone bill in the United States is $114, and approximately half of all Americans are dissatisfied with it. Recently, WhistleOut sent out a survey to determine what the average phone plan is, how much people are paying, and what they would prefer to pay.
What an Average American Phone Plan Looks Like?
What do individuals pay for when it comes to phone plans? 79% of respondents have unlimited calls and texts, 72% have unlimited data, and 60% include mobile hotspots in their plans. Only 30% of respondents are paying for a single line, which explains why 62% are paying over $100 for their plan; no single-line plan in the United States costs more than $100 per month.
The major carriers (AT&T, T-Mobile, and Verizon) continue to dominate the mobile market, with 63% of those surveyed receiving service. 58% of plans include 5G coverage, despite 5G being a relatively new network technology.
How did Americans feel About Their Phone Service?
About 44% of survey respondents experience inconsistent coverage, making it the most common complaint regarding American phone plans. 37% say their data is too sluggish, and 26% are unhappy with the amount of mobile hotspot data included in their plan.
38% of those surveyed report having intentions to switch phone plans in 2022.
Phone Plan Prices Over the Years
According to the most recent data from the Bureau of Labor Statistics (BLS), between 2013 and 2020, phone rates increased by an average of 4.7% annually. Using the BLS data trend line, we estimate that the current average cost of a phone plan is approximately $114 per month or $1,371 per year.
Where are price increases originating? The advertised prices of the major airlines have remained relatively stable for several years. Nevertheless, price increases may be concealed by increased administrative fees or modifications to grandfathered plans. For example, Verizon customers recently experienced a fee increase, and some AT&T customers have observed that the monthly rates for their older plans have increased.
Americans Are of the Opinion That They Pay Too Much for Telephone Service
Nearly half of the respondents to our survey believe they are paying too much for cell phone service, and a staggering 73% are concerned that rates will continue to rise.
So, how much are Americans willing to pay? In light of the fact that the average single-line phone plan costs about $76 per month, 48% of respondents to our survey believe a plan costing less than $75 would be reasonable. About 32% of these individuals claim that a plan with a monthly cost of less than $50 would be optimal.
It is nearly impossible to locate a plan from a major carrier with similar features to the average American phone plan for less than $50 per month. However, MVNOs such as Visible and Mint (both as low as $30/month) offer unlimited plans that suit the bill. A person paying an average of $76 per month could transfer to a carrier like Visible and save $432 per year, or to Mint Mobile and save $552 per year.
Note: All data is taken from the various website, so data may be different.
Stay tuned with your cell phone store for more educational Posts like this.
