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Are free phone plans actually worth using and what's the catch?

Are free phone plans actually worth using and what's the catch?

Edgar Cervantes / Android Authority
While there are plenty of affordable phone service providers, just how low can you go on your phone bill? Believe it or not, it's actually possible to get cellular service for free.
You might assume there's some kind of income restriction or major catch — and in most cases, you'd be right. Most free plans require you to qualify for the government's Lifeline assistance program based on income. However, a few providers now offer free service to anyone, regardless of income.
In the past, FreedomPop was one of the most well-known free options. I even used it briefly for my daughter's first phone. Unfortunately, they no longer offer truly free plans. Over time, prepaid carriers have become increasingly affordable, but until recently, TextNow was the only real option left for completely free service. That changed earlier this year when Helium Mobile launched its own free plan, adding some much-needed competition.
I've been testing both services privately for about a month now, and I've come away with a much clearer picture of whether free phone plans are worth the usual trade-offs. Let's dive into what each provider offers and who should (or shouldn't) consider them.
TextNow vs Helium
Based on my research, TextNow and Helium Mobile are the only reputable providers currently offering free phone service in the U.S. as of 2025. Here's a quick breakdown of what each one includes:
TextNow Talk, Text, and Essential Data: Free unlimited talk and text using T-Mobile's network (after a one-time $4.99 SIM fee).
350MB of high-speed data, then throttled speeds (128Kbps) up to 1GB total — enough for maps, email, rideshares, and basic messaging.
Requires a special ad-supported app for calling and texting — your phone's native dialer won't work.
Offers hourly, daily, or monthly data add-ons ($0.99/hour, $4.99/day, $39.99/month).
Helium Zero Plan: Includes 3GB of data, 300 texts, and 100 minutes each month.
Offers 'Cloud Points' as a reward system — earn points through referrals, monthly usage, Wi-Fi profile installs, and more.
You can upgrade to the Air Plan for $15/month to get unlimited talk, text, and data.
Right out of the gate, Helium wins if free data is your top priority. In contrast, TextNow is a better pick for unlimited calling and texting, though its data offering is barely usable for most tasks. TextNow is clearly designed for light, essential data use (like Google Maps or WhatsApp), while Helium is more about giving you a fully functional backup mobile experience with a limited amount of monthly data.
Of course, neither plan offers premium-level perks, so what really matters is how well the service actually works. Here's how they compare in key areas: Network partner : Both use the T-Mobile network, though Helium supplements this with its own hotspot network in select areas.
: Both use the T-Mobile network, though Helium supplements this with its own hotspot network in select areas. Reliability and speed: Expect deprioritization and slower speeds during congestion. In my testing, T-Mobile generally gives around 25–50 Mbps where I live, but with both of these services, I typically saw speeds under 10 Mbps, sometimes even under 3 Mbps or less. Typically usable, but limited.
Expect deprioritization and slower speeds during congestion. In my testing, T-Mobile generally gives around 25–50 Mbps where I live, but with both of these services, I typically saw speeds under 10 Mbps, sometimes even under 3 Mbps or less. Typically usable, but limited. App experience : Helium lets you use your phone's native dialer and messaging apps. TextNow forces you into its ad-heavy, buggy app — and yes, it is annoying.
: Helium lets you use your phone's native dialer and messaging apps. TextNow forces you into its ad-heavy, buggy app — and yes, it is annoying. Extras : Helium's reward system is decent in theory, though you likely won't ever qualify for anything. You can redeem points for gift cards to places like Amazon, Walmart, and Sephora. TextNow doesn't offer anything comparable.
: Helium's reward system is decent in theory, though you likely won't ever qualify for anything. You can redeem points for gift cards to places like Amazon, Walmart, and Sephora. TextNow doesn't offer anything comparable. Privacy and security: TextNow's app dependency raises some privacy concerns, and its poor integration with two-factor authentication is a downside. Meanwhile, Helium requires always-on location sharing to use its free plan — which some may find intrusive.
Nothing in life is ever really free, so what's the catch?
As you'd expect, these companies aren't giving you service out of the goodness of their hearts. They're still making money, just in less obvious ways.
TextNow primarily relies on ads. Its app is packed with them, and it functions more like a VoIP line than a traditional mobile service. That helps keep costs down for the company, but it also causes compatibility issues. For example, it doesn't work well with two-factor authentication, which is a major drawback in today's world.
With Helium, the revenue model is murkier. The company requires location sharing to qualify for the free plan, but claims it doesn't sell your data. Still, the persistent tracking requirement raises red flags for privacy-conscious users. Whether or not they're selling the data, it's reasonable to assume that some value is being extracted from that constant stream of location info — or they wouldn't offer the service for free.
It's also likely that the Zero Plan is a way to build awareness of Helium's hotspot network and premium offerings, so it's not necessarily that Helium is up to anything sneaky here but it's still something to be aware of.
Free phone plans can be great, but they are not for everyone
Edgar Cervantes / Android Authority
Honestly? I was pleasantly surprised by how well both services handled calling and texting. That said, there are definitely quirks — particularly with TextNow, whose app often felt sluggish and bloated with ads.
When it came to data, the limitations became more obvious. Neither provider offered great speeds, and during peak congestion, it wasn't unusual for performance to dip below 1 Mbps in crowded areas. Still, getting a full 3GB of data from Helium was a huge plus. By comparison, TextNow's data is more like an emergency reserve than anything you could realistically use day to day.
If I had to choose one, Helium Mobile's free plan would be my recommendation in most cases. You get more data, a smoother user experience, and the ability to use your native dialer and messaging apps. However, if you don't use data at all and just want free, unlimited talk and text, TextNow could still be a solid pick.
I'm going to be honest: I would not recommend either service for a primary mobile line, unless the following is true: You still have a landline at home . The same applies if you have a VOIP device set up. It's good to have a backup here.
. The same applies if you have a VOIP device set up. It's good to have a backup here. The service is intended for a child's first phone . There's no cost here, and it's a good training wheel service to see if your kid is ready for a paid phone plan.
. There's no cost here, and it's a good training wheel service to see if your kid is ready for a paid phone plan. You absolutely can't afford to pay anything for service. These free services are fairly reliable and certainly better than nothing.
If you're just looking for a secondary line, both services are solid options — especially if you want T-Mobile coverage to complement a different primary network. For example, I pair Helium's T-Mobile-based plan with my main line on Verizon.
That said, in most situations, Helium is the clear winner. You probably don't need unlimited calls or texts on a backup line, but having 3GB of usable data can come in handy. Whether it's for occasional hotspot use, temporary phone swaps, or giving a number to people you don't know well, it works.
At the end of the day, you're trading a bit of privacy (and some quality-of-life features) for free service. That's not inherently a bad deal — especially if you're already handing over your data to countless other services anyway.
If you haven't tried either of these providers yet, I recommend giving them a shot. You've got almost nothing to lose. You can learn more or sign up at the Helium or TextNow websites, respectively.

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Summer kicks off with a new corporate perk aimed to ease employees' stress

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