Budget carriers promise big savings over major carriers like Verizon or T-Mobile, with plans starting at as low as $15 a month. Since they use the same networks, they appeal to cost-conscious users with no contracts and easy eSIM switches. Still, hidden pitfalls make the transition less appealing.
From sluggish data to limited support, these trade-offs frustrate users. The following are six unexpected downsides of switching to a budget carrier or MVNO that you should be aware of while deciding if the savings are worth it.
6
Network (de)prioritization
Budget carriers, or MVNOs, lease bandwidth from major networks. However, their customers often face deprioritization during peak times. Think packed stadiums, rush hour in cities, or holiday weekends. By sharing the spectrum, they avoid heavy infrastructure capital investments. This deprioritization leads to slower data speeds, even with a 5G signal. For example, a Visible user on Verizon’s network might struggle to stream video at a concert, while Verizon’s postpaid customers enjoy faster connections.
In urban centers like New York or San Francisco, where network demand is high, these slowdowns can be frequent and potentially irritating. For remote workers, gamers, or those relying on real-time updates from services, this inconsistency can hinder productivity or entertainment.
The disparity is worse in rural areas. Users may notice issues in areas with limited towers as deprioritization exacerbates weak signals. If any of these problems seem like they could bother you, test the carrier’s performance via an eSIM trial to gauge if your daily routine can tolerate these dips, especially if you’re in high-traffic zones or depend on data for work.
5
Limited or expensive add-ons
Budget carriers and international roaming don’t go well together. For example, while T-Mobile offers free data in 200+ countries and Verizon provides affordable daily passes, their budget counterparts, like Mint Mobile or Consumer Cellular, offer expensive and restrictive international roaming plans.
MVNOs use this to their advantage. If you travel abroad without an appropriate plan and forget to disable international roaming, your bill can go up quickly, even if you barely use it. For instance, most major carriers offer free or cheap roaming plans for trips to Canada and Mexico, but budget carriers might offer this as an optional paid upgrade.
Another similar compromise can be seen for international calling, even if you haven’t left the country. Carriers know that expats often prefer to have this add-on, and don’t always include it in base plans.
Frequent travelers, digital nomads, or occasional vacationers may find these limitations negate savings, racking up unexpected costs, or losing connectivity abroad. If you cross borders regularly, budget carriers without seamless global connectivity options can feel like a gamble, requiring you to plan your usage to avoid bill shocks.
It’s also not uncommon for budget carriers to frequently change their prices or perks in response to the competition and other factors. Keep an eye on what the plans offer and omit.
4
Lack of physical or on-call customer support
Most budget carriers operate in an online-only environment, unlike the brick-and-mortar stores owned and operated by major carriers like AT&T or Verizon. This means that you’re on your own without in-person help for SIM setups, device diagnostics, billing disputes, or service disruptions. A simple task that could have been solved with a short conversation is now a process that requires understanding and learning a bunch of things.
This might be manageable for tech-savvy users, but for those less familiar with networking terminology, eSIMs, navigating chatbots, or email support can be daunting. The ability to take your device to a store and get a quick resolution is underrated until you have to do it.
Wait times for online support can stretch hours, and phone support often involves long holds or scripted responses. This problem can be bad in rural or isolated areas, but urban users may miss the convenience of walking into a store. If your device fails to connect or you have activation hurdles, resolving issues remotely can test your patience, making budget carriers less appealing for those who value hands-on service or lack reliable internet for virtual support.
Some services, like Telus’ Public Mobile, do not have a customer helpline number. The only way to find solutions is to send them an email and wait for a reply, or troubleshoot it yourself. If you’re having an unlucky day, you could be stranded for a while.
3
Upfront phone purchase costs
Major carriers offer phone deals that allow you to spread the cost of a flagship device over 24 to 36 months, with trade-in deals and other offers. Budget carriers typically do not always offer device deals, requiring you to buy a phone outright or bring your own device. While you may save a little over the year with a cheaper phone plan, you’ll spend hundreds more when you want to upgrade your phone.
That is not to say that MVNOs never have combined plans or phone deals, but they are generally not as great as the ones you find with a big carrier, or might be limited to older or lower-end options.
This forces users to source newer phones elsewhere, often at full retail price, practically erasing plan savings. For those looking to upgrade every two to three years, the lack of financing options or subsidies stings, especially compared to major carriers’ promotions.
Budget carriers offer substantial savings on the plan. However, the affordability doesn’t extend to hardware, making them less attractive to users who look forward to the latest devices or desire flexibility.
2
Hidden limits on ‘unlimited’ plans
Unlimited plans sound enticing, especially when offered by budget carriers, but they often come with catches. Many MVNOs throttle speeds after a data consumption threshold. We have seen carriers drop speeds to as low as 512kbps after the set quota is used up, making it difficult to do anything beyond the bare minimum on the phone. Some carriers attach such limits to Wi-Fi hotspot speeds, making browsing or working on laptops or tablets painfully slow.
There are also fair usage policies that may come into play before hitting the data cap. Heavy users including streamers, gamers, video publishers, or those using phones as Wi-Fi hotspots will find these restrictions crippling, and surprising if the terms and conditions were not read carefully.
These limits and missing features make budget plans less viable for data-intensive lifestyles, forcing users to upgrade to more expensive plans or change to a different carrier for truly unlimited access.
1
Fewer perks and benefits
Major carriers sweeten plans with perks like free Netflix, Disney+, or Spotify subscriptions, plus discounts on home internet connections or smartwatches. Budget carriers rarely match these. Such benefits can add $10 to $20 in monthly value, making them a great choice if you were going to pay for such add-ons. For families, losing these perks or bundles reduces savings further.
Some MVNOs offer referral bonuses, but they amount to a few dollars a month, which pales in comparison to major carriers’ loyalty programs or device upgrade incentives. If you rely on bundled services or enjoy free subscriptions, switching to a budget carrier can feel like a downgrade, as the bare-bones plans lack the value-added features that justify higher costs elsewhere. This gap makes MVNOs less compelling for households juggling multiple services or seeking long-term rewards.
You get what you pay for
Budget carriers like Mint or Visible offer low-cost plans and no contracts, ideal for light users with strong Wi-Fi access who know how much they will consume each month. But the downsides — slow data, poor roaming, no stores, high device costs, throttled unlimited plans, and fewer perks — can frustrate those needing robust service.
Evaluate your data, travel, and support needs before switching. eSIM trials let you test MVNO deals risk-free, and reading the fine print on data or roaming avoids surprises. If reliable speeds or in-person help matter, a major carrier may be worth the cost. Choose wisely to balance savings and satisfaction.
