Palm's $5 smartphone plan: A cellphone bill cheaper than a Netflix subscription

These days you can get more than a foot-long sandwich for $5.

The tech company that introduced the world to the PalmPilot in the '90s has partnered with US Mobile to design a basic monthly smartphone plan that really couldn't get any cheaper. The only catch is, you have to own a Palm smartphone.

Palm announced Friday that its new introductory Light plan, which offers 60 minutes of talk, 200 text messages and 200 megabytes of data, will be available for $5 a month, plus a one-time $60 payment if you sign up for annual .

The three-month version of the service jumps up to $6 per month, and just 1-month of will cost you $7.50.

In November 2018, the San Francisco-based company Palm introduced a $350 credit card-sized smartphone. Launched in 2014, US Mobile is best known for offering customers customizable prepaid service options rather than one-size-fits-all plans.

The latest $5 phone plan is designed primarily for millennials and Generation Z, according to the press release.

A recent survey suggests that 49% of young adults are using a data service that their parents are paying for. So a $5 option will give the connected generation a sense of independence.

Also, the offering works for people who have a secondary phone for work, or for when you want to be accessible but not consumed by internet culture. It's also an affordable option for parents who are looking to buy their teen's first smartphone.

"The US Mobile plans are perfect for the person who is on-the-go and looking for more affordable options to connect their Palm," said Howard Nuk, co-founder of Palm. "If you're using Palm as a secondary phone for the gym or morning runs, at $5 a month, these plans are a no-brainer," he added.

Offering phone plans that limit digital interaction could also help curb smartphone addiction. US Mobile said in a statement that the partnership with Palm is set to "transform the entire connectivity experiences" by "actually encouraging users to use their phone less."

US Mobile is also offering a yearly Moderate plan for $10 a month that gives you 250 minutes of talk, 1,000 text messages and 1-gigabyte of internet service. The midtier three-month option costs $12, and the 1-month version is $15.

For a limited time, customers who order a Palm can receive a free month of service if you sign up for the Ultimate Plan. The top-tier data plan comes with unlimited talk, text and 8-gigabytes of internet. It's $20 a month, or $240 if you pay it all at once.


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