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SPECIAL REPORT
Posted Feb. 2001
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Recommendations for choosing a cellular-service plan
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The challenges of choosing cellular service are as formidable as ever. Here's how to zero in on a plan that won't disappoint:
Size up your needs. When you sign up for cellular, your monthly bill can add anywhere from $20 to $100 or more to your household expenses. It's worth asking yourself whether you really need to take on that commitment. In our survey, seven out of ten respondents agreed with the proposition that having a cell phone "more than pays for itself in convenience and peace of mind." And at least initially, most of our survey respondents signed up for service for use in the event of an emergency.
Weigh all your options. The Internet has made shopping for plans much easier than just a few years ago, when all you had to go on were service providers' newspaper ads or brochures. Use our up-to-date
interactive listing
to find cellular service plans in major U.S. markets (searchable by zip code).
Consider a prepaid plan first. The consequences of committing to the wrong service contract can be costly, since most come with stiff early-termination penalties that can run as high as $200. That's why, if you're new to cellular, it may be a good idea to size up how you'll actually use the service before you sign on for a longer-term agreement. Most providers offer, at no monthly charge, plans that don't require a contract. You'll have to purchase an allotment of minutes separately and replenish your prepaid time when it runs out. Though more expensive on a per-minute basis, calling a la carte will help you better understand your usage patterns-and whether the carrier meets them. Armed with those insights, you'll be better able to match a contract to your needs.
Don't gorge on "free" minute plans. Bigger buckets of included minutes of air time and the extra off-peak time you can purchase for a few dollars more may be as tempting as an all-you-can-eat buffet. But curb your appetite: Any unused time remaining in your account at month's end cannot be carried over, inflating the per-minute cost of calling time you do use. Half our survey respondents said they failed to use a half hour or more of talk time that they'd paid for; judging from their most recent bill, most had wasted an hour or more. (Being overdrawn was much rarer: Only one in six exceeded their monthly allotment-half of them by a half hour or longer. The median number of minutes used was between 51 and 100 per month.)
Keep track of air time. Most handsets can keep a running count of minutes used, which may help track calls. But they cannot differentiate between peak and off-peak periods, if that matters in your plan. (Be clear on what your carrier considers a "weekend"-some include Friday night, others don't.) Carriers themselves aren't too helpful. Verizon Wireless, for instance, lets you dial #MIN for a tally that might be a day old. And be aware that when you roam off your carrier's network, those fees might take a month or two to catch up with you.
Check contract details before signing. The price of getting a free or heavily discounted handset or the lowest per-minute rates might be a one- or two-year commitment with a stiff cancellation fee. But recognizing that it costs them less to hold onto a current customer than to recruit a new one, companies may allow you to upgrade or even downgrade your service plan without penalty. Some, including AT&T Wireless and Cingular, make it easy to shrink or expand your monthly allotment of air time or your home-coverage area, but the changes may restart the contract's clock.
When your contract expires. One year-the standard length of a cell-phone service contract-is an eternity in this fast-moving industry. When your contract is up for renewal, should you jump ship and sign on with another carrier? (If you do nothing, your service will typically continue on a monthly basis.)
It's worthwhile to explore your options, but think twice about switching providers: You may have to buy a new phone, pay a new activation fee, and get a new number. What's more, the new carrier may present new aggravations. You may discover that you have problems calling in places where you've been used to phoning without a hitch.
At this stage in its development, wireless Internet access is a chimera not worth paying extra to get. Switching might be worth the trouble, however, if you get a good deal on services you really want, like a bigger bucket of included minutes at little additional cost. In our survey, half the respondents who switched said they'd found a better deal. Sizable numbers cited dissatisfaction with the service, or wanting a different type of phone or coverage over a wider area.
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Copyright © 2001 Consumers Union of U.S., Inc.
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