Mobile phone plans

Key points to remember

It's a very good idea to know how much data you are using per month. Most smartphones track this information and can tell you which apps use more data than others.

If you don't get close to using your data, minutes or text allowance each month, you could argue that you're overpaying on your cell phone plan. Exceeding these allowances though, incurs charges which can be high.

Average mobile data usage in Canada is 6GB per month. But understand your own data usage and find a plan that is in line with what you use.

Ensuring the world's second-largest country has cell service is challenging. But the three main carriers: Bell, Rogers and Telus, provide coverage in most areas of Canada.

Whilst these three offer expensive phone plans, they also own and operate more "affordable" carriers. Bell Mobility owns Virgin Plus and Lucky Mobile; Rogers Wireless owns Fido and Chatr; and Telus Mobility owns Koodo and Public Mobile.

So whilst cell coverage shouldn't be a problem, it's worth checking with your provider the signal strength you may get in your area.

You don't need to be locked into a 12, 18 month contract. Most cell phone plans can be month-to-month (unless you are buying a new phone at the same time). So if you find a better deal later on, you should be able to switch and keep your number too.

If you buy a new phone with your provider, it will more than likely be on a contract. If you decide to switch in the middle of your contract, you may pay some fees to cancel. But you will also be required to pay back the remaining balance of the phone, at full retail price.

If you buy a new cell phone, why not sell your old one? You could make $100s depending on the make, model and the condition of the phone. There are many companies willing to buy your old phone, though be aware that the money they'll offer you can vary a lot.

If you misplace or lose your phone, there's a neat way to help find it. Avoid buying a new phone or paying insurance by trying this:

iPhone users can use the Find My iPhone service on iCloud to make it ring. Go to Find My iPhone (https://www.icloud.com/find) and sign into your iCloud account. Select the device and click "play sound". Your device will ring even if it is silent. Note that you must have an iCloud account to use this feature.

With an Android phone, use Google's Find My Device (https://www.google.com/android/find/) service. Sign into your Google account and click "play sound".  Your device will ring even if it is silent. Note that you must have a Google account to use this feature.

Ways to save on your mobile phone costs

Many people either overpay on their phones, their cell plan or both. But simple changes and tactics can save $100s a year.

Buying a new phone

Unfortunately, buying a new phone is costly. If you’re looking at the latest models from Apple, Google and Samsung then it’s going to be expensive. That said, there are ways to buy a phone and save yourself $100s.

Getting a new phone through a major carrier, you’ll likely overpay on the phone, the contract or both.

It can work out cheaper to buy a phone outright and get a sim-only deal with it. But smaller carriers are also offering more competitive phone and plan deals. Here’s a couple of things to look for to reduce the cost of a new phone:

Compare contract deals

  • Getting a new phone would usually mean signing up to a two-year contract where the cost of the phone is included in the plan’s monthly cost. This is where it gets expensive. Note, that you may be credit checked too.
  • Before your contract ends (a month before) contact your carrier to negotiate a new deal or switch carriers. If your price remains roughly the same, it’s almost like your paying for the phone again.
  • WhistleOut is a great comparison tool to find contract deals from various carriers. You can play around with the options to help find the right contract and phone for you.

Buy the phone separately, find a sim-only deal

  • Finding a phone for the cheapest price, and pairing it with a cheap sim-only plan is a cost-effective tactic.
  • Consider the refurbished market as you can save $100s. The packaging or accessories might be damaged or missing, but the phone itself is tested thoroughly and usually comes with a warranty. Read more here about buying a refurbished phone.

Keep your phone and get a sim-only plan

If you’re happy with your phone, you can get a sim-only or “bring-your-own-phone” plan for a reasonable price with a decent amount of data, minutes and texts.

Sim-only deals

  • A sim-only deal works best if you’re happy with your current phone or can afford to buy a new phone outright. Additionally, sim-only deals usually work better for heavy data users.
  • There are two options: a fixed-term contract (usually 12 months), or a month-to-month contract. The great thing with a month-to-month contract is that you are free to leave for a better deal by giving a month’s notice. A fixed-term contract can be better value though.

Prepaid or pay-as-you-go

  • You can pay for your mobile using prepaid vouchers or topping up your account. This requires paying in advance to cover your usage. Note that when your balance runs out, you will likely need to top up again to use data, minutes or texts.
  • A pay-as-you-go or prepaid plan doesn’t require a contract or usually a credit check. But it typically is more expensive, especially for heavy data users.

Switch providers and keep your phone number

Switching carriers is quite straightforward. The following steps are usually required to activate your new plan:

Get your IMEI number

This is a unique identifier for your phone. To check network compatibility, and switch to your new carrier, you’ll need it. Type *#06# on your phone and the IMEI number will be displayed.

Check network compatibility

When looking for a new plan, you’ll want to ensure your device is compatible with the carrier’s network. You can check this by entering your IMEI number on the carrier’s website. If you can’t do that online, you can call them instead or visit their store.

Find your new plan

Have a good think about what you need in a cellular plan. Plenty of data? Lots of minutes? WhistleOut is a great comparison site that allows you to check out the latest plans available from most carriers.

Check any eligibility requirements

Some carriers require new customers to have a minimum credit score amongst other criteria. Check first that you meet the requirements a carrier might have.

Pay off any balances on your current plan and understand what cancellation fees may apply.

If you got a new phone with your existing plan, you’ll likely need to pay the remaining balance for the phone. Check with your carrier what these costs would be and if you incur a cancellation fee. The CRTC’s wireless code of conduct ensures that the maximum early cancellation fee is $50. But if you received a new phone, that cost needs to be factored in too.

Note that you should NOT cancel your current plan. Your new carrier will do this for you.

Make the switch

You can do this either online, over the phone or in person at one of the carrier’s retail stores. They will speak with your current provider to cancel your service and carry your phone number over to your new plan. This can happen quite quickly, though it is possible to request a specific date to make the switch.

Essential information

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Information found on this site does not constitute financial advice. You must do your own research to determine if it’s right for your specific circumstances.

We do not and cannot recommend specific financial products. We may provide examples of products or companies, but always do your own research. Speak with a financial advisor to understand whether a product is right for you.

Note that providers often change the price and terms related to their products. So whilst we aim to provide accurate information, check or speak with a provider to get the latest deals.

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