Special Consumer Report
Recommendations for choosing a cellular-service plan
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 a survey we conducted
in 2000, 7 out of 10 respondents agreed that having a cell phone
"more than pays for itself in convenience and peace of
mind." And at least initially, most 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 cellular calling-plan selector
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 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, whether the carrier meets them,
and whether its coverage is adequate in areas you frequent.
Armed with those insights, you'll be better able to match a
contract to your needs. (Prepaid airtime usually expires in
a month or two if unused.)
Don't gorge on "free" minute plans.
Bigger buckets of included minutes of airtime 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, and many carriers have recently started nighttime
hours later or ended them earlier in the day.) 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 airtime 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. 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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