T-Mobile is finally getting the iPhone 5, meaning that Apple’s latest and greatest is available on every major U.S. wireless carrier.
In addition to the iPhone 5, T-Mobile has done away with cellphone contracts and moved to flat-rate pricing. The company hopes its new plans — as well as its monthly installment payments for the device itself — will lure customers away from the likes of AT&T and Verizon.
So, now that the iPhone 5 is available on all major carriers — which carrier offers the best deal?
We did the math and calculated the monthly rate for an iPhone 5 on Sprint, AT&T, Verizon and T-Mobile. We also accounted for the price of the device itself and calculated the total cost of ownership over the course of two years.
In our scenario, we wanted unlimited voice minutes, unlimited text messages and at least 4GB of data per month. With HSPA+ and LTE networks getting so fast, most users want to use their phone as a mobile hotspot, so we factored that in to our monthly price as well. We did not account for taxes or activation fees, which vary depending on location.
So who came out on top? Check out the results:
iPhone 5 Carrier Shoot-Out: Sprint vs. AT&T vs. Verizon vs. T-Mobile
T-Mobile is the clear winner on price — with a 16GB iPhone 5 and two years of service costing nearly $600 less than AT&T and Verizon and nearly $1000 less than Sprint. T-Mobile’s new “Simple Choice Unlimited” plan promises unlimited voice, text and data for just $70 a month.
There are a few caveats with T-Mobile’s plan. For instance, the unlimited plan only includes 500MB of data for using your phone as a mobile hotspot. If you want more than that, you can buy additional data separately. T-Mobile also reserves the right to start throttling your data speeds if you use more than 5GB in a given month.
Verizon and AT&T — the two biggest wireless carriers in the United States — offer nearly identical pricing options. An unlimited voice and text plan — plus 4GB of data that can be used as a mobile hotspot — costs $110 per month for both carriers. This is actually significantly better than the previous options offered by both companies, which charged a separate rate for mobile hotspot and regular data and, in the case of AT&T, an additional fee for unlimited text messages.
Sprint — which bills itself as the best value for the iPhone 5 (at least, until T-Mobile got the phone) — is actually the most expensive if you factor in unlimited voice minutes and a mobile hotspot plan. While Sprint does offer “unlimited” data for its phones, that does not include using the phone as a mobile hotspot. If you want to do that, it’s another $20 a month for 2GB. That winds up being another $480 over the course of two years.
One area that is difficult to compare is service level. If you live in a major metropolitan area, T-Mobile and Sprint probably offer good service. In more rural areas, however, both networks suffer when compared to AT&T and Verizon. And while AT&T bills itself as the “largest 4G network,” Verizon still has a bigger LTE footprint and its 3G coverage area — while not as fast as what you can get on AT&T or T-Mobile — is more comprehensive.
If you have a family plan — billing and mobile share stats get even more complex — but here, too, T-Mobile generally comes out best on price.
Do T-Mobile’s new plans change your decision about where to use an iPhone 5 (or other smartphone)?