Shopping for Mobile Phone Plans Isn't Easy

If you've been shopping for a mobile phone plan, you know that it isn't easy. There are numerous providers offering all sorts of plans with an array of options and features. Each feature seems to be a little different from one provider to the next. Every plan has a different collection of options that are allowed. And don't forget the fine print... How many extra costs and limitations are tacked on at the bottom in really small text?

Canadian Mobile Plans are complicated

The Mobile companies aren't dumb. The know they have a good thing and they all would like to avoid a price war. Instead of competing by lowering prices, they compete on features and options. And almost everything is extra... Do you think Call Display is included? Basic Voicemail? Other "standard" features? Guess again. Most will nickel and dime you for every last penny. They don't even give you the plan's full price up front. Instead they tack on an extra made up "System Access Fee" or "Government Regulatory Recovery Fee" of up to $8.95. The mobile companies claim this is to cover various costs of running their business. Which begs the question, "What are they doing with the rest of the money?"

A recent report by the Seaboard group suggests that for an average user, the extra costs and fees are 49% of their monthly bill (not including taxes). That means you can expect on average to end up paying twice the listed price. Compare that with the US where extra costs were found to be only 22% of the bill, according to the study.

Simply put, it is very hard to compare plans if you don't know how much it will cost until after you've bought it.

Do they make it difficult on purpose?

Probably!
In fact, you could make a case that it's their strategy.
Sure, with enough time and patience you can wade through all the combinations and find a deal that's best for you and probably save hundreds of dollars a year. But the reality is most people don't have that much time. Cell companies are betting that if they make it complicated enough, people will simply give up. They hope you'll choose a plan based on their advertising, their promotions, or best of all, based on the advertised price! That way people end up with a plan that probably isn't the best for them and costs more than it should. And that benefits the mobile providers.

According to an article in the Finacial Post new providers will help the price competition in 2010, but we suspect that research what plan is best for you will still be difficult. We will likely see new services and ways to structure plans, however comparing across wireless providers will still be difficult as they look to compete on marketing hype and promotions.

So... what is the best plan?