How Much is the Average Monthly Phone Bill for One Person?

People spend 4 hours and 39 minutes on their mobile phones. That’s almost 30% of your waking hours if you get eight hours of sleep. If you’re not searching for information, streaming videos, or playing games, you’re probably talking or texting friends, family, or co-workers.

With so much time literally on your hands, have you ever wondered if your phone bill is higher than the next guy’s?

In this article, we discuss:

• The average monthly phone bill per person
• The factors that affect the cost of your phone bill
• 5 tips on how to lower your phone bill

At the end of this article, we’ll put everything together and teach you how to choose the right phone plan to suit your needs and budget.

What is the Average Monthly Phone Bill Per Person?

A 2024 study conducted by J.D. Power revealed that the average monthly phone bill per person is $144.

The figure represents an 8% decline from the $157 average monthly phone bill reported by J.D. Power in 2023.

According to J.D. Power, the average monthly bill declined because the Big 3 telcos, T-Mobile, Verizon, and AT&T, are pushing subscriptions that are incentivized with generous discounts.

For example, you can lower the cost of your AT&T monthly subscription from $51 to $35.99, if you sign up for a minimum of four lines. The telcos can accommodate the reduction in subscription packages because they have focused on streamlining operations.

A 2024 study by Deloitte highlighted the telco’s shift toward generative AI, cloud-based, and 5G technologies to improve customer experience, operating efficiency, and lower costs.

However, the decline in average monthly phone bills might not only be because of discounted pricing and streamlining strategies. There’s also a noticeable shift in consumer behavior.

In 2023, software developer WhistleOut, ran a survey to find out if consumers were overpaying for their phone bills.

These are the survey results:

• Consumers are overspending by 86%.
• 62% of consumers have a mobile phone plan from the Big 3: T-Mobile, AT&T, and Verizon.
• 40% of consumers with a phone plan from the Big 3 have seen a price increase in their phone bill. 
• 47% of mobile phone subscribers have shifted to Mobile Virtual Network Operators (MVNOs).

• 30% of subscribers don’t know how to check data usage.
• 76% of subscribers choose Unlimited Data plans.
• 63% of Unlimited Data subscribers use less than 15 GB. 
• 55% of Unlimited Data subscribers are on Wi-Fi most of the time.

The data shows that you can significantly reduce your monthly phone bill if you subscribe to a mobile phone plan that fits your daily needs and budget. You don’t need a phone plan with the bells and whistles to get things done.

If we got you excited, hold on!

Let’s find out why your phone bill could rise.

What Factors Affect the Cost of Your Phone Bill?

So, are you alarmed that you’re spending more than $144 monthly on your phone bill?

Or are you pleasantly surprised that you’re spending less on your phone bill than the average consumer?

More importantly, can we expect the decline in monthly phone bills to continue over the next few years?

First, let’s find out the factors that cause your monthly phone bill to rise.

1. Rising Cost of Phone Plans

Promotions are like Kendall Jenner’s relationships with NBA players—they don’t last long. You can enjoy discounted prices for a limited time before they return to normal.

Despite these deals, the Big 3 carriers have steadily increased prices over the past 30 years. According to a WhistleOut survey, 40% of Big 3 subscribers saw their phone bills rise.

For example, the average cost of an AT&T monthly subscription is $175. A $35.99 monthly rate for an AT&T Unlimited Plan for four lines might have quietly increased to $43.75 without you noticing.

2. Rising Taxes on Wireless Services

In 2024, a household with four phones on a $100 monthly plan would pay $294 annually in taxes, fees, and government surcharges, down from $305 in 2022. Despite this decline, the 24.5% tax rate on wireless services is a record high due to increased tax rates in states like Illinois, Arkansas, and Washington.

The reduction in total fees is attributed to a decrease in the Universal Service Fund (USF) rate from 12.8% to 10.2%. The USF fee, collected by the Federal Trade Commission, funds programs to improve access to telecommunications.

As the demand for wireless services grows, expect tax rates to rise, providing a steady revenue source for the government.

3. Buying the Sales Pitch

It’s easy to understand why consumers are drawn to Unlimited Plans—the pitch is simple: “Get more for less.” However, the reality is that most people don’t need unlimited data.

If you check your actual data usage, you might be surprised to learn that you only use around 10 to 15 GB of mobile data monthly. Consider your Wi-Fi usage as well.

If you’re on an Unlimited Plan, ask yourself, “How often do I use mobile data?” Chances are, you only use mobile data 45% of the time, primarily when you’re not at home or the office.

Take a lesson from LeBron James.

While debates about the greatest basketball player of all time continue, there’s no argument about who the “Cheapest Of All Time” (COAT) is. The “King” is worth billions of dollars, yet he doesn’t use mobile data. James proudly calls himself the “cheapest guy in the NBA” because he avoids paying for mobile data and apps to save money.

Most subscribers don’t check their data usage, and the Big 3 telcos capitalize on this. They lure you in with unlimited data for a discounted price and throw in freebies like Netflix.

Don’t fall for the sales pitch. Follow the King’s example and reconsider if you truly need unlimited data.

4. Number of Lines

AT&T’s Unlimited Plan will say your monthly phone bill will cost $35.99, but you must sign up at least four lines to the service.

$35.99 x 4 = $143.96 monthly

That’s your average monthly bill per person right there!

You won’t find the price for a singular line on AT&T’s website. You’ll have to call customer support or look for a third-party reseller, where you’ll find out that the cost of a singular line is $51 monthly.

Once you sign up, the carrier can increase prices at their discretion. Before you know it, your $143.96 monthly subscription has increased to $204.

5. Insurance

Consumers love their mobile phones so much that they’re willing to cover them with insurance. Who can blame them?

The mobile phone has evolved from a compact device that sent and received calls to an innovation of digital technology that could process payments. Everything you need to do – is in your phone.

The mobile phone has become part of our daily lives. We bring it everywhere – the bathroom, the gym, the grocery store – places where it can get damaged or lost.

How many of you have almost dropped your mobile phones in the bathtub, the kitchen sink, or the toilet?

Mobile phone insurance can add $5 to $20 to your monthly phone bill. It would be a better idea to buy a $40 waterproof and impact-proof phone case than to cover your mobile phone with insurance.

5 Tips to Reduce Your Phone Bill

Now that you know the factors that could increase your monthly phone bill, let’s discuss how to lower it.

1. Switch to an MVNO

An MVNO or Mobile Virtual Network Operator is a small wireless operator that doesn’t have the technological infrastructure to run full-scale telecommunication services. Instead, they piggyback off the Big 3.

For example, Mint Mobile is an MVNO that uses T-Mobile’s technological infrastructure to run its wireless network.

Compare the cost of Unlimited Plans between the Big 3 and MVNOs like Mint Mobile, RedPocket, and US Mobile.

You might wonder, “AT&T is only $3.49 more expensive than US Mobile. I’ll go with AT&T to be sure.”

The monthly cost of $32.50 for US Mobile is for a singular line. For AT&T and Verizon, you can only get the rate if you sign up for three to four lines to the service.

Let’s assume the cost of an AT&T singular line is $51 monthly. By switching to US Mobile or Mint Mbile, you can reduce your phone bill by 36% to 40%.

2. Keep Track of Your Data Usage

How often do you surf the Internet? Do you use your mobile phone to watch movies, stream videos, or play games? Are you constantly checking and responding to emails? How often do you update your social media status?

You can keep track of data usage on your phone by opening its Settings and tapping “Connections” on Android or “Mobile Network” on an iPhone. Tracking your data usage will help you determine how much data you should subscribe to.

For example, if you only use 10 GB monthly, you can switch from your current Unlimited Verizon Plan with 60 GB to a Mint Mobile 15 GB and reduce your subscription cost from $55 to $20.

That’s a 63% increase in monthly savings!

3. Choose Family or Multi-Line Plans

Choosing a mobile phone plan designed for families is an effective way of reducing your monthly phone bill because you’re sharing the cost.

People who sign up for multi-line plans don’t just bring in their family members.

Here are the results of a survey done by WhistlesOut on who makes up these family plans:

• 42%: Spouses or partners
• 34%: Parents or grandparents
• 22%: Siblings
• 20%: People who aren’t related

The important thing to remember is to share the phone subscription with people who are responsible enough to pay their share consistently.

4. If it Ain’t Broke…

Getting a new phone can be tempting… and also costly.

Another strategy the Big 3 uses to increase sales is to package mobile subscriptions with the latest phone models.

The ads look enticing, making it look like a great deal.

However, do you really need a new phone?

Signing up for these deals will increase your monthly bill and tie you down for some years until the phone is fully paid.

A better idea would be to save until you can afford the phone and then downgrade your monthly phone subscription or switch to an MVNO with a lower plan.

Remember, phones are depreciating assets. The moment you take the mobile phone out of its box, it becomes subject to wear and tear.

5. Be More Careful with Your Phone

The most common issues consumers have with their phones are as follows:

• Battery failure
• Damaged front camera
• Microphone failure
• Power button failure
• Charging port failure
• Speaker failure
• Broken or cracked screen

Instead of getting mobile phone insurance, it is better to be more careful with its use and handling.

After all, as we mentioned earlier, phones are depreciating assets. They might be durable but not indestructible.

How to Choose the Best Phone Plan

Let’s sum up everything you’ve learned.

To reduce your monthly phone bill…

• Switch to MVNOs. They use the Big 3’s wireless network but are cheaper because they don’t have the bells and whistles.
• Don’t Buy the Sales Pitch. Keep track of your data usage and choose the phone plan that provides you with the features you need.
• Read the Fine Print. Getting family and friends to join you is a smart idea. However, read the fine print of the ad. Look for the asterisks and find out what they’re about. Also, take some time to read the contract. Some contracts include provisions that state the price of the multi-line package might be valid for only a limited time.
• Exercise Restraint. That brand-new phone looks like a shiny, new toy and the carrier makes it seem affordable. Pump the breaks on the new phone and save until you can buy one. Think twice before purchasing a packaged phone plan. It looks like a good deal, but you’ll be tied down by a contract. The cost of the phone unit will be another expense line on your monthly bill. No matter how awesome a phone looks, it will depreciate over time.
• Go with Second-Hand Phones. If the idea of a new phone is keeping you awake, opt for a second-hand unit. Then, downgrade your plan to cover only the cost of the phone line and the bandwidth you need.
• Ditch the Insurance. Insurance for your home… yes. Insurance for your car… yes. But for your phone? Your home and car are also depreciating assets, but the repair cost is higher than for your mobile phone.

Related Articles:

• Is a Phone Bill Considered a Utility Bill?
• 10 Best Ways to Lower Your Phone Bill
• 10 Effective Tips to Reduce Water and Sewer Bill

Summary

Presently, the average monthly phone bill per person is $144. If consumers remain unmindful of the factors that affect their phone bills, the figure could be higher next year.

Inflation continues to rise, and the Consumer Price Index for telephone services has been climbing since 2018. However, demand for wireless services is also rising. Businesses and consumers increasingly depend on mobile technology to manage their daily activities.

The good news is wireless service is no longer the domain of the Big 3. You have the MVNOs who give you the option of paying for the same technology at lower prices.

47% of subscribers have switched from the Big 3 to MNVOs.

If you’re overpaying for your phone bill, and the economy or your financial situation worsens, you might miss some payments.

Take your time when choosing the right phone plan. Find the one that fits your needs and budget.