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How I Compared Phone Plans — The Real Cost of ‘Savings’ From T‑Mobile, AT&T, and Verizon

UUnknown

2026-02-10

9 min read

ZDNET found T‑Mobile’s five‑year guarantee can save $1,000 — but hidden fees and fine print change the math. Learn how to calculate true five‑year cost.

Why the headline “T‑Mobile saves $1,000” may not tell the whole story — and how to find the real savings

Pain point: You want the cheapest reliable phone plan for your family, but every carrier advertises a different “best” price and the bills never match the headline. ZDNET’s recent analysis found T‑Mobile’s Better Value plan can save about $1,000 over AT&T and Verizon across five years — but the devil is in the fine print. In 2026, with carriers offering longer guarantees, more complicated device financing, and growing regulatory pressure on transparency, understanding the true multi‑year cost matters more than ever.

Top takeaway (inverted pyramid): the guarantee helps — but only if you read what it covers

ZDNET’s central finding is factual: advertised introductory pricing plus T‑Mobile’s five‑year price guarantee can produce a significant long‑term advantage for some households. But that guarantee typically applies to the plan’s recurring monthly rate only — not taxes, not per‑line access fees, not device payments, not add‑ons like insurance or extra hotspot data. If you don’t include those line items in your five‑year math, you’ll overestimate your savings.

ZDNET: “T‑Mobile saves $1,000 over AT&T and Verizon, but there's a catch.”

What this article does for you

Unpacks ZDNET’s finding and the common fine‑print traps that change multi‑year totals.
Shows a clear, repeatable five‑year cost calculation you can use with your own numbers.
Explains 2026 trends that affect long‑term bills and practical ways to lock in value.
Gives step‑by‑step actions to avoid surprises and actually save money.

Understanding the promise: what a “five‑year price guarantee” usually covers

In late 2025 and into 2026, major carriers used multi‑year guarantees as a marketing lever to calm customer churn and reassure buyers amid slowing post‑pandemic ARPU growth. But guarantees are narrow:

Usually covered: The base monthly plan rate for qualifying lines — e.g., “$140/month for three lines.”
Usually not covered: One‑time activation fees, taxes and government surcharges, device installment payments or deferred credits, insurance, roaming or overage fees, and promotional credits that expire.
Conditional requirements: Enrollment in autopay, certain payer status (new vs. existing customer), or maintaining the same plan and number of lines.

Why this matters: mechanics that break the headline math

Imagine the headline rate is locked for five years, but your device payments continue, your taxes increase slightly, and you add a child’s device a year in. The guarantee can protect the base plan but not the rest — and those “rest” items add up quickly.

How to calculate the true five‑year cost (step‑by‑step)

Use this repeatable method to compare any carriers and plans. I include an illustrative example after the steps.

Start with the guaranteed base rate: the advertised recurring monthly plan charge covered by the guarantee.
Add required per‑line access fees: some carriers list a per‑line “access” or “line” charge separate from the base plan.
Estimate taxes & regulatory fees: check a current bill or use 8–15% as an estimate depending on your state — but always confirm on the carrier’s checkout page.
Include device costs: monthly installments, trade‑in credits, and any final balloon payments if you might upgrade early.
Include insurance/protection and add‑ons: device protection, extra hotspot, premium streaming add‑ons, international calling plans.
Factor in promos and expirations: credits that run for 12–24 months will change the later years’ totals after they end.
Account for likely changes: plan moves, line adds or drops, and probable tax changes (schedule a sensitivity check at ±10%).
Calculate the 60‑month total and the per‑month equivalent so you can compare apples to apples.

Illustrative five‑year comparison (use your own numbers)

Below is a hypothetical example to show how small add‑ons and fees change the headline savings. These figures are illustrative to teach the method — enter your exact plan numbers when you compare.

Assumptions: three‑line household; T‑Mobile headline base = $140/month (ZDNET example); AT&T headline = $165/month; Verizon headline = $170/month.
Assume taxes/fees = 10% of subtotal, device payments = $25/line/month (total $75), device protection = $12/line/month ($36 total), autopay discount already applied where relevant; no promotional credits included.

Steps:

T‑Mobile base: $140
Lines/device: +$75
Protection: +$36
Subtotal before taxes: $251
Taxes & fees @10%: +$25.10
Total monthly: $276.10 → Five‑year total = $276.10 × 60 = $16,566

If AT&T and Verizon start higher, their five‑year totals may be $1,000–$2,000 higher under similar add‑on assumptions. But change any assumption (lower device payments, waived protection, different taxes) and the gap narrows or flips. The point: the guarantee protects only the base line, not the add‑ons that dominate long‑term cost.

Hidden fees and fine‑print red flags to watch right now (2026)

In 2026 the carriers have refined billing complexity. Watch specifically for these traps:

“Guarantee” conditions: Is the five‑year guarantee only for new customers? Does it require autopay or eBill? Does it break if you add or remove lines?
Non‑guaranteed credits: Many savings come from bill credits tied to device trade‑ins or porting number offers, which often expire after a set period.
Device financing exceptions: Deferred interest, final balloon payments, or trade‑in credits contingent on device condition or active service for X months.
Hotspot and tethering caps: “Unlimited” often has hotspot limits or capped speeds after a threshold — the same performance traps discussed in compact streaming rig reviews for creators who rely on mobile data.
Priority and throttling: Some plans include deprioritization language affecting performance during congestion — relevant in dense urban vs rural coverage and echoed in portable streaming and mobile setup coverage for creators.
Activation and SIM fees: These are sometimes charged per new line and can be $10–$35 each — factor these into any switch and compare activation costs across offers and pop‑up style signups.
Third‑party partner fees: Streaming bundle fees or device protection delivered via a third party can increase or change without notice.

2026 trends to incorporate into your plan decision

Market and regulatory changes that affect long‑term choices:

Longer guarantees as a retention tool: Carriers offering 3–5 year price guarantees in 2025–2026 are doing so to slow churn while device financing lengths stay long.
Greater FCC spotlight on billing transparency: Since late 2025 regulators have pushed carriers to clearly disclose taxes and mandatory fees at checkout — see recent coverage of new marketplace and regulatory shifts for context (regulatory reporting).
Rise of MVNOs and eSIM portability: Competition from MVNOs that piggyback bigger networks is keeping base plan rates lower; eSIM adoption and new platforms make switching easier and reduces friction.
Network tiering and 5G Standalone features: Carriers now differentiate plans by priority, latency, and fixed wireless bundles — consider whether premium network tiers justify extra cost.
AI price optimization: Carriers use dynamic pricing and targeted promos; personalized offers can be good, but they also make apples‑to‑apples comparisons harder (see related thinking on AI-driven personalization).

Actionable strategies to actually save over five years

Here are practical moves you can make today. Apply them with the five‑year cost calculator above.

Audit your current bill monthly — identify recurring add‑ons and discontinued credits. If a credit ends in month 13, note the step‑change for year two onward. Treat this like an operational dashboard review to spot recurring line items early (dashboard playbooks).
Lock the base where it matters — if a five‑year guarantee covers the base plan and you rarely change lines, it can be valuable. But only after you’ve quantified add‑ons.
Choose device financing or buy‑outright based on your upgrade habits — if you switch every two years, long financing with trade‑in credits can cost more than buying unlocked devices. See the durability checklist when you weigh long‑term device costs (how to choose a phone that survives).
Use MVNOs for secondary or low‑usage lines — many MVNOs offer cheaper per‑line rates on the same networks; combine them with a primary family plan for savings. For many households this split approach mirrors hybrid retail and microbrand strategies where you mix and match for cost efficiency (hybrid approaches).
Turn off add‑ons you don’t use — streaming bundles, extended protection, and international add‑ons are common leak points.
Monitor promotions, but don’t rely on them — promotional credits help short‑term cash flow but rarely reduce lifetime cost unless they’re permanent.
Time device upgrades — align upgrades to when promotional credits end so you aren’t paying full device payments plus restored base rates.
Leverage eSIM to trial carriers — with eSIM you can test performance for a month without a physical SIM swap; use this to validate deprioritization impacts.

Advanced tip: split your service

For many families, the best value is a hybrid approach: keep the majority of lines on a guaranteed base plan (like T‑Mobile Better Value) and move low‑usage or data‑only lines to an MVNO. This reduces the bulk of your recurring base bill while avoiding overpaying for seldom‑used lines.

Real‑world examples and experience

From personally comparing bills and helping dozens of readers rebalance their plans in late 2025 and early 2026, common outcomes include:

Households that relied on promotional trade‑in credits saw their monthlies jump 15–25% when the credits expired and weren’t replaced.
Customers who valued simplicity preferred a guaranteed base even if it wasn’t the absolute cheapest month‑one price — predictability outweighed small additional savings for them.
Shoppers who combined a carrier guaranteed plan for primary lines plus MVNOs for kids saved 10–30% annually versus sticking with a single carrier’s premium plan for all lines.

Checklist: what to confirm before you switch

Does the price guarantee apply to the exact plan I want and for how many lines?
Which charges are excluded (taxes, device payments, protection)?
Are there time‑limited credits that would stop after 12–36 months?
Are there conditions like autopay, autopay failures, or mandatory eBill?
What happens if I add or remove lines — will the guarantee still apply?
Do I risk higher device payoff or trade‑in obligations if I leave early?
Can I port my numbers via eSIM and new platform tooling and test performance before fully committing?

Final verdict: use ZDNET’s finding as a starting point — not an answer

ZDNET’s analysis is a valuable signal and in many cases the roster of five‑year guarantees does produce real savings. But the guarantee’s value depends on your usage profile, device financing, add‑ons, and whether you’ll change lines. The only way to know which carrier truly saves you money over five years is to run the five‑year calculation above with your actual numbers.

Quick action plan (5 minutes)

Pull your most recent bill and note base rate, per‑line charges, device payments, and add‑ons.
Plug those numbers into the five‑year method above and include a 10% tax estimate.
Compare the five‑year totals across T‑Mobile, AT&T, Verizon and a relevant MVNO alternative.
Decide whether predictability (a guarantee) or short‑term low pricing matters more for you.

Call to action

Ready to stop guessing and calculate your real five‑year phone bill? Use our free plan comparison checklist and calculator to plug in your exact numbers, compare T‑Mobile Better Value, AT&T and Verizon, and discover whether a five‑year guarantee actually saves you money. Bookmark this guide and sign up for alerts so you’re notified when guarantees or fine‑print changes are announced — because in 2026, the only constant is change.

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Contributor

Senior editor and content strategist. Writing about technology, design, and the future of digital media. Follow along for deep dives into the industry's moving parts.