Sprint vs Verizon vs AT&T: Which is "Better"?

Wednesday, 22 April 2009

Verizon vs Sprint vs AT&T Mobile Broadband: Which is "Better"?

Once you've determined that mobile broadband will fit your needs (need to learn more? Check out this article: What is EVDO?), the next step is to select a service provider. The three leading 3G service providers in the US are Verizon, Sprint, and AT&T, and all of them offer 3G mobile broadband service at a rate of about $60.00/month with a 5GB allowance. So how do you choose which one to sign up with?

It's a question we hear daily, and there is no definitive answer - Verizon is better for some users, Sprint for others, and AT&T for still others. There are some differences between the three, however, and in most cases once a user's individual needs are taken into consideration deciding which carrier to sign up with will be easy.

1) Coverage: The absolute most important factor to consider when deciding between carriers is "who has the best coverage where I want to use mobile broadband?" No carrier has coverage "everywhere", and there are some locations that may be covered by one carrier but not the other.

If you plan to use mobile broadband in just a few specific locations, we recommend comparing Sprint's, Verizon's, and AT&T's coverage at each specific address using the 3G Coverage Tool. While coverage maps can't "guarantee" that you'll be able to use the service at a particular address, comparing the maps side by side will give you a good idea of whether coverage is available in your area.

For travelers who need to use mobile broadband nationwide, we highly recommend choosing Verizon or Sprint, whose nationwide coverage surpasses that of AT&T. AT&T has strong nation-wide voice coverage, but their 3G coverage is not as widespread as Sprint's or Verizon's. AT&T 3G is available in most big cities and can be a great solution for users who either only need service at one address (and have confirmed coverage there) or only travel to metropolitan areas, but for rural use, Sprint and Verizon are better choices than AT&T.

For real-world reports on EVDO performance around the country, we also run EVDOmaps.com. This is NOT a coverage map but a place where users can post actual speed test results and descriptions of their gear, so that others can see what service was like at that moment in time, from that user's location (please note that these maps do NOT include AT&T).

2) Cost: Sprint, Verizon, and AT&T all charge about $60/month for 5GB of usage with a 2-year contract, but there are some variations in their other costs:

  Verizon Sprint AT&T
Monthly Fee $59.99 $59.99 w/ 2-yr contract (save $10/mo if you also have a cell phone with the $99.99/mo "Simply Everything" plan); $79.99 w/ 1-yr contract
$60.00
One-time Activation Fee $35
$36 ($25 if customer already has an account)
$36
Overage Charge $0.05/mb = $50/GB $0.05/mb = $50/GB
$0.49/mb = $490/GB
Cancelation Fee

$175 less $5 per month of contract completed

$200 for first 4 months; after 4 months ETF is calculated by multiplying $10 by the number of months remaining on contract down to a minimum of $50) $175 less $5 per month of contract completed
Upgrade Fee $0 $18
$0 if contract is completed; $36 if upgrading early (21-23 months into 24-month contract)

Clearly, the biggest difference in price between Sprint, Verizon and AT&T is the overage charges. For 99% of users, overage charges are never an issue because they never go over 5GB per month. However, if you know that you require a considerable amount of bandwidth sometimes, it will cost you much less to exceed your limit on Sprint or Verizon - going over your limit with AT&T will cost you dearly! If you're not sure whether 5GB is enough bandwidth for your internet use, check out this article: What Does 5GB Get Me?

3) Contract Options: The most cost-effective solution for Mobile Broadband is to sign up for a 2-year contract, but some folks simply do not want to be tied to a carrier for a long-term contract. Below are the contract options and costs for Verizon, Sprint and AT&T:

Verizon contract options:

  • 2-year, 1-year, and month-to-month options available
  • Monthly cost is $59.99 regardless of contract seleected
  • With 2-year contract, devices available for $0-$199.99
  • With a 1-year contract, you pay $125 more up-front for the device
  • For a month-to-month contract, you must purchase the device at full retail price ($200-$300)

Sprint contract options:

  • 2-year and 1-year options available, NO month-to-month option
  • Monthly cost is $79.99 on 1-year contract
  • With 2-year contract, devices available for $0-$79.99 (3Gstore pricing - Sprint direct pricing is significantly higher)
  • With a 1-year contract, you pay considerably more up-front for the device (up to $250)

AT&T contract options:

  • 2-year and 1-year options available, NO month-to-month option
  • With 2-year contract, devices available for $0-$39.99 (3Gstore pricing - AT&T direct pricing is significantly higher)
  • With a 1-year contract, you pay considerably more up-front for the device (up to $200)

It's easy to see that opting for a 1-year or month-to-month contract is usually not going to be the most affordable plan - it is far cheaper to sign up for a 2-year contract, get a cheap or free modem, and pay the cancelation fee later down the road if you must. However, in some circumstances Verizon's month-to-month option may make sense (for example, if you already have a modem and only need service).

4) Cancelation Fees and Trial Period: All three carriers offer a 30-day trial period during which a customer can cancel their service without incurring an early termination fee (ETF), but it is not "free". For Sprint, if you cancel within the first 30 days you will receive a refund of your activation fee and only be responsible for paying for the partial month that service was active. For Verizon and AT&T, your activation fee will NOT be refunded (unless you cancel during the first 3 days of the contract) and you will also be responsible for paying for the partial month of service.

After 30 days have passed, canceling a Sprint, Verizon, or AT&T contract incurs an ETF. The ETF policies are as follows:

  • Sprint: The Sprint ETF starts at $200 and begins to go down after 4 months. After 4 months have been completed, the ETF is calculated by multiplying the number of months left in the contract by $10. So, if you have completed 7 months of your 24-month contract, your ETF would be: 16 months remaining X $10/mo = $160. The minimum ETF is $50 (once you get down to that level, it doesn't go down any further). The full explanation can be found here.
  • Verizon: Verizon's ETF is $175 less $5 for each month that has been completed. If you have completed 7 months of your 24-month contract, your ETF would be: $175 - $5 x 7 months completed = $140
  • AT&T: AT&T's ETF is the same as Verizon's, $175 less $5 for each month that has been completed. If you have completed 7 months of your 24-month contract, your ETF would be: $175 - $5 x 7 months completed = $140

5) Other Considerations: For most people, coverage, costs, and contract options are the most important factors in selecting a carrier. However, there are a few other differences between Sprint and Verizon that may be important to some users:

  • Sprint now has 4G in some areas and their new 3G/4G devices and plans make them a great option even if 4G isn't available in your area yet. 4G will not be available from Verizon until the end of 2010 at the earliest and AT&T has no firm plans for 4G yet
  • GPS: Some Sprint modems are GPS-capable, Verizon devices are not
  • Roaming in other countries: All three carriers have some coverage in Canada and Mexico (for additional charges), but only AT&T offers service overseas. If you plan to use mobile broadband outside the US, remember to check coverage and pricing - roaming fees can be VERY expensive.
  • Static IP: Sprint offers static IP addresses for $3/mo; Verizon charges a one-time fee of $500, and AT&T charges both a one-time fee of $500 and a monthly fee of $3/mo.
  • Verizon in MOST places uses 850mhz for their 3G network, Sprint and AT&T use in 1900mhz in most areas. The 850mhz band penetrates through walls and into homes more effectively. 850mhz is also a much better option if an antenna with a longer cable run is needed, for example a standard 25ft cable loses 1.8 dbm in 850mhz and the same cable on 1900mhz the loss is 2.8 dbm.

The Bottom Line: No carrier is perfect for "everyone" - it is very important to take YOUR needs into account when selecting a carrier. If you need help deciding, do not hesitate to contact us with your needs and we will be happy to make a recommendation!


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Last Updated ( Tuesday, 19 January 2010 )
 
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