AT&T Build-A-Plan: the blueprint for cheap postpaid

Cheap and postpaid rarely went together until AT&T announced its Build-A-Plan option in May. The premise is simple: you pay a rock-bottom rate for core connectivity features, but have the flexibility to add more data during the months you anticipate heavy use.

Prepaid rates on one of America's facilities-based providers — so, what's the catch?

Bare-bones approach

Although AT&T is the second-most expensive carrier, Build-A-Plan is the cheapest postpaid plan available right now. The plan starts at $15 per month for unlimited talk and text and 1GB of data. If that sounds insufficient, you can add more data features, but your bill will rise accordingly. You can tune the plan to your liking every month to account for months when you need more data, but be sure make changes a month in advance.

Here's the data pricing:

• 5GB for $5
• 15GB for $10
• Unlimited data with Standard Definition streaming for $20
• Unlimited data with Ultra High Definition streaming for $35

Keep in mind that adding more data will replace the 1GB allowance.

You can also add hotspot data, but its allowance must be less than or equal to your mobile data allowance. Here are the rates:

• 5GB for $5
• 25GB for $15
• 50GB for $20

When you run out of data allowance, speeds are reduced to 128kbps.

The caveats

Taxes and fees are extra, as is standard across the industry. While no one is going to bat an eye at that, the price cut comes with restrictions:

• Each account can only have one line, which might be frustrating if you want everyone in your household to be on the same plan. Of course, you can bypass that limit by creating more accounts.

• AT&T isn't offering phone deals on Build-A-Plan, so you will have to bring an unlocked, eSIM-capable phone. iPhone 13 and newer models, the Galaxy S24 and newer models, and most modern phones support the eSIM tech.

• This is an online-only plan, so you can't activate it through retail stores.

• AutoPay is mandatory. The plan isn't eligible for extras such as AT&T International Day Pass and AT&T Turbo.

AT&T: the best of both worlds?

While Verizon offers the most expansive 4G coverage and T-Mobile offers the widest 5G coverage, AT&T is the sweet spot. AT&T may not offer the fastest peak speeds, but many customers find its network more reliable. Here's how AT&T's network stacked up against those of T-Mobile and Verizon during some of this year's biggest connectivity tests:

• RootMetrics' State of the Mobile Union Report named AT&T the runner-up, with just one fewer award than Verizon. The carrier was praised for performance, reliability, and speed. With AT&T shifting to 5G SA, deploying the spectrum acquired from UScellular, and upgrading network equipment, speed and performance have improved significantly.

• Opensignal found that AT&T users spent the most time connected. AT&T has a slight edge when it comes to the proportion of time customers have a network connection in the places they visit most often.

T-Mobile and Verizon don't even come close

T-Mobile and Verizon have yet to respond to AT&T's Build-A-Plan with competing offers. While both carriers offer lower-tier plans, they cost at least twice as much as AT&T's cheapest plan.

T-Mobile Essentials 2.0: T-Mobile's most affordable postpaid plan starts at $55 for one line. For this price, you get unlimited talk and text, 50GB of data, and unlimited 3G hotspot data. Build-A-Plan would still be cheaper even if you added unlimited data.

Verizon Simplicity: Verizon also offers a barebones plan that costs $30 a month for one line. In addition to unlimited data, talk, and text, the plan also gives you access to the Verizon Dollars loyalty program and includes 10GB of mobile hotspot data, as well as a discount of up to 50% on watches and tablets. You can also opt to pay an additional $35 or $50 per month to be eligible for phone subsidies.

T-Mobile and Verizon have both reduced the prices of their cheapest plans to $25 a month at Walmart.

Should you take the plunge?

Build-A-Plan is a no-frills plan for customers who want basic connectivity but don't want to switch to prepaid.

Go for it if:

• You want prepaid rates, but not the prepaid experience.
• You are mostly connected to Wi-Fi and rarely use mobile data when away from home.

Avoid it if:

• You rely heavily on a mobile hotspot.
• Your home internet is unreliable, and you are a power user.
• You rely on a carrier to upgrade your smartphone.
• You expect your postpaid plan to come with digital perks.

While postpaid carriers have long courted well-off customers, the introduction of cheaper plans indicates that they want also want to target budget-conscious subscribers. Traditionally, those customers have turned to MVNOs and cable companies, but prepaid brands tend to lose more customers than postpaid carriers. One reason could be that because prepaid companies don't provide a satisfactory experience.

T-Mobile is also expected to roll out a modular plan sometime this year. While it won't be nearly as affordable as Build-A-Plan, the rumor is just another sign that customers increasingly only care about core connectivity. No one is doing it better than AT&T right now.

Mint Mobile's 6-month plans now cost $10/mo

$10 /mo

$35

$25 off (71%)

Mint Mobile is celebrating its 10-year anniversary with a special offer on its six-month subscription plans. For a limited time, you can get your preferred tier (6GB, 17GB, 23GB or unlimited) for just $10/mo. That saves you between 50% and 71% on the carrier's mobile plans, making it way easier to recommend.

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