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Cell Phone Service (by Boston Consumers' CHECKBOOK)

 
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Introduction 

Yes, users complain about dropped calls, poor customer service, burdensome long-term contracts. Most of us get annoyed with noisy restaurant conversations, unwelcome rings in movie theaters, distracted motorists. Nonetheless, more and more Americans continue to sign up for cell phone service. As of mid-2002, there were more than 137 million cellular subscribers in the U.S., spending on average more than $500 per subscriber per year. 

And while usage has roughly doubled over the past four years, average household spending on cell phone service has remained largely unchanged during that period. Cell phone users today get more minutes for less money than ever before, and are being encouraged to use those minutes on an ever-increasing array of services and features—from accessing the Internet to playing games to sending instant messages. A small but increasing number of cell phone users has even elected to pass up regular landline service and rely exclusively on cellular service. The days in which cell phones were just for stranded motorists and corporate powerbrokers are far behind us. 

There are, in fact, plenty of appealing uses for cell phones. You can do business or chit chat with friends during otherwise wasted hours sitting in traffic. You can make arrangements and confirm arrival times. You can be accessible when needed for business or in family emergencies. You may be able to avoid danger by calling ahead to have others keep an eye out for you, or by calling for help if your car breaks down on a lonely highway. 

But these benefits have a substantial cost. Even the most parsimonious cellular user can expect to spend at least $250 per year, and it’s easy to spend many times that much. If you haven’t yet gone cellular—or if you have and regret the move every time you get the monthly bill—it’s worth considering whether you can meet your needs with a cheaper alternative. After all, until a few years ago, most of us got along just fine with nothing more than plain old telephone service and a little pay phone change in our pockets. 

But for many who have grown accustomed to the convenience of cell phones, there is no going back. If that is your situation, this article should help you think through your choices so that the next time you have the opportunity to make a choice of service company and plan, you get the one that works best for you and keeps your costs to a minimum. 

We have evaluated the six companies that serve the Boston area with their own cellular service antennas and networks: AT&T Wireless, Cingular Wireless, Nextel, Sprint PCS, T-Mobile, and Verizon Wireless. 

Cell Phone Basics 

To think about your cell phone choices, it is helpful to have a basic understanding of how these systems work. 

When you use a cell phone to make a call, your message is transmitted as a radio signal to a receiver/transmitter antenna set up by your cell phone service company. The antenna might be located on a tower erected just for that purpose or might be located on a building, water tower, or other high place. The location of the antenna is referred to as a “cell site.” 

From the cell site, the signal is transmitted to land lines. If your call is to a regular wired telephone at a residence or business, the signal will be passed on through a connection to the network of the local phone company—Verizon, in most of this area. If your call is to the cell phone of another customer of the same cellular company, your call might simply be transmitted over your cellular company’s own wires to another cell site, from which a radio signal will be sent out to that customer’s cell phone. 

Each cellular company has been assigned a set of frequencies for its radio signals. Your call is transmitted to the cell site’s antenna on a small portion of your company’s frequencies and the other party’s voice is transmitted back to you from the cell site’s antenna on another portion of your company’s frequencies. Your cell phone has an antenna of its own to receive this return transmission. 

The frequencies assigned to your cellular company would be enough to carry quite a few calls—just as the various frequencies on your FM radio dial or television tuner can carry programs on quite a few stations or channels. But there would not be nearly enough frequencies—or “channels”—to give you and each of the cellular company’s other customers in the Boston area your own channel on which to transmit your calls. 

That’s where the idea of the “cell” comes in. Your little cell phone transmits your phone call just like WGBH or WAAF transmits a radio program, but your cell phone intentionally uses a very weak signal that doesn’t go very far. The geographic area to which it reaches is described as a “cell.” Your cellular company will design cells to be larger or smaller depending on how many cell phone users it expects there will be within an area. The company may design its system so that your phone’s signal goes only a very short distance—perhaps just within a single building like an airport or arena—or it might design the system in a low-population area so that your signal reaches much farther—possibly as far as 20 miles. 

The key is that another customer can use your frequency to send a call to another antenna at another cell site without having to worry about having your call get mixed up with his or her call so long as that other antenna is outside of the reach of your transmission. In fact, many customers throughout the Boston area can use the same frequency so long as they are geographically far enough apart and the radio signals they send out from their cell phones are weak enough that they don’t interfere with each other. This is similar to the fact that radio stations in other cities can use the same frequencies used by Boston area radio stations, just as long as those cities are far enough away that the transmissions don’t interfere with one another. 

As the number of a cellular company’s customers increases, the company must increase the number of antennas and shorten the distance customers’ radio transmissions travel, thus creating more cells—and more opportunities to reuse the same frequencies. 

Your phone won’t transmit on the same frequency every time you call. The company’s system is designed to tell your phone which frequency to use so that your phone will be put on a frequency that is not currently being used by another customer in the cell where you are currently located. Furthermore, your cell will have only certain frequencies available to it, none of which are available in adjacent cells—so that even if you are at the outer edge of your cell, you won’t be near another customer using the same frequency. 

This explains how a relatively small number of frequencies can be used to handle thousands of a cellular company’s customers in the Boston area—if all are sitting still. But a main point of cell phones is to be able to move around—often drive around—while you talk. How is that possible? It is possible because the cellular company has a central computer that senses that the signal reaching your current cell site’s antenna is becoming weaker as you move away from the antenna; this computer passes (“hands off”) calls from one cell site antenna to another as you move from one cell area to another. The computer simultaneously tells your cell phone to change the transmission frequency it is using to one of the frequencies allocated to the new cell. The hand-off should be imperceptible to you. 

Cellular systems are set up on a geographic area by geographic area basis. If you travel to another area, you will probably be able to use your cell phone in that area, but you may be using it on a system owned by another cellular company. Cellular companies in different areas have worked out agreements and systems to connect with each other; depending on your cellular service plan, you may pay extra when “roaming” in another area. 

Of course, everything doesn’t always work as well as the theory. For example, in a poorly designed system, there may be pockets where your cell phone’s signal can’t reach a cell site antenna or there may not be enough frequencies to accommodate all the callers within a cell, so your call may not go through or might be dropped as you move. 

The Digital Alternatives 

The original cellular systems were designed to use “analog” radio signals. In an analog cellular voice transmission, the frequency of the radio wave used for communication varies in proportion to variation in the sound wave of your voice. In the past few years, cellular services have migrated to digital systems, with more than 85 percent of all cell phone subscribers using digital systems as of mid-2002. In a digital system, the volume and pitch of your voice are described by your phone system at the origin in the 1s and 0s of computer language; then, at the destination, before the call is delivered to the other party’s ear, those 1s and 0s are translated back into a sound wave. 

Digital transmission has several advantages. First, its signal is less subject to certain transmission problems, such as static and fading. The difference might be compared to the difference between a CD—which is digital—and a typical cassette tape—which is analog. Second, digital systems can be easily designed to provide such services as paging, voicemail, caller ID, call waiting, text messaging, and Internet access. Third, digital phones generally offer better battery life than analog phones. Fourth, digital systems are likely to be able to find you a few seconds more quickly if you have your phone on to receive calls when traveling to another city. Fifth, digital phones are more secure. It is relatively easy for anyone with a modified police scanner to listen in on analog calls or to steal credit card numbers or PIN numbers you might punch in on an analog system; someone listening in with a scanner to a digital call hears a sound much like the sound you hear when you pick up the phone line on a computer modem. 

From the cellular companies’ point of view, digital also has the advantage that it allows them to handle more traffic in each cell. Several calls can be handled at once on the same frequency because your speech can be described in the computer code of 1s and 0s more rapidly than the speech actually occurs. So the system divides up the time into tiny increments and lets different calls take turns using the frequency. 

In building up their digital networks, cellular companies have focused their efforts on densely-populated metropolitan areas that offer them the best chance of recouping their enormous investments in infrastructure. From a coast-to-coast perspective, analog still has greater coverage and service availability. Just about every area of the U.S. is still covered by an analog system, and millions of consumers are still using analog-only cell phones. The cellular companies maintain the analog systems for these customers and also as a backup in case the digital systems can’t find a signal. 

The fact that different companies are all using digital transmission technology does not mean their systems are compatible—that you can use your phone on all the systems. First, there are two different frequency bands used by cell phone services in the U.S. Some services operate in the 800 megahertz (MHz) range and some operate in the 1900 MHz range. Second, there are several different ways of coding and transmitting the digital information that represents a phone call. 

AT&T and Cingular currently use the TDMA (Time Division Multiple Access) technology in the Boston area, although both are also building GSM networks (see below) to accommodate next generation wireless features. A TDMA system squeezes several calls into the same frequency at the same time by breaking up your sequence of 1s and 0s into little strings and inserting strings from several other callers between each of your strings. At the other end, it is possible for the cell phone equipment to know which little strings of 1s and 0s are yours by the order—the time sequence—in which they arrive. For instance, the system might know that every third string is yours. 

Sprint and Verizon use CDMA (Code Division Multiple Access) transmission technology. This technology also breaks up your stream of 1s and 0s into little strings and mixes these strings with strings from other callers. But with CDMA there is no requirement that the strings from the different calls move in the same time sequence. Three little strings from your call might be transmitted, then five from another caller, then one from you, and so on. But each caller’s strings are marked with that caller’s code (a few additional 1s and 0s) and the cellular system can sort out the hodgepodge of multiple callers’ little data strings at the other end based on these codes. 

AT&T, Cingular, and T-Mobile use GSM (Global Systems for Mobile Communications) technology in the Boston area. GSM is based on TDMA technology with other features. It is the technology used in Europe and many other parts of the world, although European phones use a different frequency band than AT&T, Cingular, and T-Mobile use in the Boston area. 

Nextel has its own technology which combines GSM and TDMA technology with other features that make it work with Nextel’s special radio frequencies. 

Almost all new cell phones sold today are either dual-mode, meaning they are equipped to operate on both analog and digital systems, or tri-mode, meaning they can operate using an analog system and two different digital frequency bands. Having a phone with dual- or tri-mode capability means you’ll increase your chances of successfully placing calls, since your phone will be able to switch to a different mode if you can’t get a signal using the phone’s primary mode. If you travel a lot, you’ll want a phone with multiple modes so that as you travel in and out of networks using different technological standards, you’ll continue to get a signal. 

Nextel and T-Mobile are the only providers in the Boston area that do not offer backup analog services. So their calling plans may not be good options if you will need to use your phone in rural areas that are less likely to be covered by their all-digital networks. 

Coverage 

When you are choosing a cell phone service company, a key consideration will be coverage. There are several aspects of coverage— 

  • From what locations will you be able to place, and receive, calls at all? 
  • From what locations will you be able to place, and receive, calls at your plan’s lowest rates rather than paying higher “roaming” rates (and possibly extra charges on long-distance calls)? 
  • From what areas will you get such services as caller ID and paging, which are generally available only on a cellular service company’s own digital network? 

On our Plan Costs Table, we have included brief summary descriptions of plans’ local, regional, and nationwide coverage areas as of late 2002. Since the services are constantly building their local and national networks, be sure to get a current coverage map before signing up with a company. You can check companies’ websites for the most up-to-date maps. Naturally, you will want to select a company that covers the areas where you live, work, or travel often. 

All of the services can claim coverage throughout at least the most populated parts of New England. Since AT&T, Cingular, Sprint, and Verizon customers primarily use dual- or tri-mode phones, which can switch to an analog network, if needed, they for the most part have nationwide cellular coverage. Because they rely on digital-only networks, the nationwide coverage for Nextel and T-Mobile is likely to be more spotty. 

Even within what a company claims is its coverage area, you might be disappointed. Some claims may be exaggerated, and the companies can’t test every foot of terrain. Poor coverage can exist along specific roads and in certain areas, for example, because carriers have been unable to erect a nearby cell tower or because tall buildings block signals. 

The only way to be sure a service will reliably serve locations where you will be making calls is to test it. One option is to check with friends who use the service in areas you are concerned about; they will have a lot of ready-made results from their own daily tests. Another option is to buy a phone that you can return within 30 days and sign up for a service plan you can cancel within two weeks or so. You can choose a plan that gives you a trial period, or choose a prepaid plan where you have no commitment beyond the prepaid minutes you purchase. 

Choosing for Quality 

Another key to sizing up the available companies is to assess the quality of the service they provide. Again, a good source of information on this point is conversations with friends who use the various services. The data we have collected on quality will help you focus on the cellular service companies that deserve your consideration. 

We surveyed area consumers and asked them to rate companies they had used “inferior,” “adequate,” or “superior” on several aspects of service. Our Ratings Table shows the percentage of each service’s surveyed customers who rated it either “adequate” or “superior” (as opposed to “inferior”) on the following— 

  • Being able to get connections wherever you are in the local area. Connection problems might result from a company’s simply failing to build any coverage for a location or from the company’s building too little capacity to handle the volume of calls—so that sometimes the system is too swamped to handle yours. This measure gives you a glimpse of the realities behind the pretty picture of the coverage maps. This is the measure that seems to matter most to consumers in their overall satisfaction with a company. 
  • Being able to get connections when traveling in other parts of the country. Such problems might occur because a company doesn’t have coverage—or sufficient coverage and capacity—in other parts of the country and has not made adequate arrangements with other companies to supply service. If you travel often, this measure will be critical to you. 
  • Not having calls dropped. As you move around, especially if you are driving substantial distances, you may go into an area where your company has no service or has insufficient capacity to handle current call volume. As a result, your call cannot be handed off to a new cell and is dropped. 
  • Quality of sound. With digital systems, there tends to be less sound variability than on analog systems, but even with digital systems you can have such problems as having the sound break up, causing words or syllables to be inaudible. Users rated all the companies relatively high on sound quality. 
  • How clearly charges are explained in advance. As we discuss elsewhere in this article, the ways companies calculate charges are complex and can be confusing, with time-of-day differences, on- and off-network differences, and other variables. 
  • Clarity of bills. Even if you couldn’t understand a company’s charges before you began using its service, you would like to be able to figure out what you are being charged for when you get your bill. Because of the many variables in the pricing formulas, that is not always easy. 
  • Accuracy of bills. In general, cellular service customers did not express much dissatisfaction about billing accuracy. 
  • Overall quality of service. We asked survey respondents to rate overall quality of service. This let respondents take into account the service aspects they considered most important and the degree of success or failure of their company on each aspect. What matters most to you might not be what mattered most to our respondents, of course, and the data on the preceding questions allow you to weigh what matters to you. 

The customer survey also revealed a few other facts— 

  • Respondents who said they used their cell phones mostly for business calling tended to be less satisfied with their cellular service companies than respondents who used their phones mostly for personal calling. 
  • Heavier users—those who used more than 300 minutes of cell phone service per month—tended to be less satisfied than lighter users. 
  • Knowing how well a company has performed for you in another part of the country is not a very good guide to how satisfied you will be with it in the Boston area. We surveyed cell phone users in seven major metropolitan areas and found different winners in different areas. For example, for being able to get connections locally, Cingular scored above average in the Boston area although it was the lowest scoring company in the Seattle area; T-Mobile scored among the lowest in the Boston area, but was the highest rated provider in the Minneapolis area. On matters that are not dependent on the local network, however, the same companies generally rated near the top in all the metropolitan areas. This was true, for example, of the scores on billing system clarity and accuracy. 

Looking at these data for the Boston area, Verizon and AT&T rank ahead of the others. In fact, Verizon and AT&T ranked first and second, respectively, on all three customer survey measures that have to do with making and completing calls and on the “overall quality” question. On these key measures, T-Mobile and Sprint ranked lowest. 

While these conclusions will help you choose, keep in mind that they are based on area-wide averages and therefore may not reflect the particular calling pattern you will have. Our basic advice bears repeating: before making a major financial commitment to a cellular service provider, check out its performance where you live, work, and travel. You can compare our data to the information you get from friends and neighbors or by signing up with a cellular service company under short-term arrangements that allow you to return your phone and cancel service without penalty. 

Comparing Costs and Features 

When you have sorted out the companies on quality issues, you will need to focus on cost and other features. We give you information on available plans, as of November 2002. Companies’ offerings change over time, so you will need to check details on company websites, but the information summarized here will give you perspective on the range of options. There are several questions to consider. 

Local, Regional, and National Calling Plans 

One of the first decisions you will have to make is whether you want a “local,” “regional,” or “national” calling plan. The geographic scope of your plan will determine which calls will require you to pay roaming charges, which typically cost $.49 to $.79 per minute, and possibly long-distance charges. It is important to note that each service defines its local and regional areas differently. The Plan Costs Table describes the coverage areas of each provider’s calling plans. 

If you will be making the overwhelming majority of your calls from the Boston area, you may save $10 to $25 per month by signing up for a local calling plan instead of a regional or national one. But remember that even if you make just a handful of calls from outside your home calling area each month, the roaming charges can add up quickly. Saving $10 on your monthly service fee won’t make sense if you end up getting charged $.49 to $.79 per minute (plus possible long-distance charges) for 30 or so minutes of roaming every month. 

Some “local” plans might apply home-area (non-roaming) rates to more than just the Boston area. For example, the home calling area for AT&T’s local plans includes most of New England and stretches south along the Eastern Seaboard all the way to northern Virginia. 

Among national plans, the roaming rules may vary. For example, AT&T has two national plans. With AT&T’s National Network plan, you pay no roaming charges when you are on the AT&T-owned network, which covers most metropolitan areas in the U.S. But when you must get access through another carrier’s network, as is necessary in many locations around the country, you will be charged for roaming. With AT&T’s Digital One Rate plan, you never pay roaming charges, even if access is through another carrier’s network. 

Similarly, Verizon has America’s Choice plans, which allow you to make calls without roaming charges around the U.S. so long as you gain access through the Verizon-owned network. To be able to make calls without incurring roaming charges from areas where Verizon has arranged for you to get access through another carrier’s network, you can subscribe to one of Verizon’s National Single Rate or Express Network plans. 

An advantage of plans that never charge for roaming is that you might save even on local calls if you sometimes have to go into roam mode to get a call through because of network deficiencies in this area. 

Cost for Basic Usage 

The Plan Costs Table gives you cost information on plans offered by each of the cellular service companies we evaluated. The Sample Monthly Cellular Costs Table shows how the different cellular service companies stack up when their charges are compared for a few hypothetical users with different usage patterns. As you can see, T-Mobile was a consistent winner for price across all of our sample profiles. You can size up companies’ pricing systems against your own expected usage pattern. 

The monthly cost of cellular service for most customers is primarily determined by three factors: the monthly fee, the number of minutes of “free” talk time (also referred to as “airtime”) included in that fee, and the per-minute charge for additional minutes. Your airtime usage is calculated from the time you initiate or answer a call until the call is terminated, whether you made the call or received it. Advanced features such as e-mail and voicemail also incur airtime charges. All of the carriers round partial minutes up to the next full minute. 

All of the cellular companies have various plans with different monthly fees. In the plans with higher monthly fees, you generally get more “free” minutes of talk time and pay lower per-minute charges for additional minutes. 

Depending on the plan you choose, you usually get a separate allocation of “free” minutes in “peak” calling hours and in “off-peak” hours. Peak hours for AT&T and Verizon are defined as 6:00 a.m. to 9:00 p.m., Monday through Friday. Peak hours for Cingular, Nextel, and Sprint are 7:00 a.m. to 9:00 p.m., Monday through Friday. T-Mobile’s definition of “off-peak” is limited to weekends only. 

All providers now offer rate plans that lavish customers with free off-peak airtime, often called “night and weekend minutes.” Some plans offer unlimited free off-peak minutes and some offer so many free off-peak minutes that you are very unlikely to use them up. For example, all of the wireless providers now offer some plans that come with 3,000 or more night and weekend minutes per month. That’s 50 hours of airtime per month for calls that are made either during weekends or after 9:00 p.m. Even if you talked on your cell phone for a whole hour every night after 9:00 p.m., and for three hours a day every weekend day, you still would not consume all 3,000 night and weekend minutes. 

It almost always makes sense to choose the plan with the most monthly minutes that you are sure you will use. The per-minute charges for going over your allotment can be costly. For example, one of AT&T’s local plans gives you 800 peak airtime minutes for $49.99 per month (about $.06 cents per minute) with additional minutes costing $.35 each. If you use 900 peak minutes, and therefore exceed your airtime allotment by 100 minutes, your airtime charges will have jumped, from $49.99 to $84.99, whereas you could have signed up for the plan that would have given you 1,000 peak minutes for $69.99. 

On the other hand, you will waste money if you sign up for a plan that comes with more minutes than you will use. So it pays to estimate accurately and conservatively, then reevaluate your usage in the first few months and adjust your plan accordingly. Once you are signed up with a particular provider, it is easy to switch rate plans within that provider’s offerings. To ensure that you don’t exceed your airtime allotment, you can usually check the number of minutes you have used so far in a given month by accessing your account information through the firm’s website, by calling customer service, or in some cases, by checking a counter that you can bring up on your cell phone. 

Another option is to sign up for prepaid service (see our Sample Prepaid Plans Table ), see how long it takes you to use the minutes you prepaid for, and then find a monthly plan that approximates those usage patterns. 

Charges When You Travel 

If you sign up for a local or regional calling plan (or if you sign up for a national plan that gives you its best rates only when you get access through its company-owned network), you will pay roaming charges if you get access from other networks. These charges are typically $.49 to $.79 per minute. 

Long-Distance Charges 

With some plans, you have to pay extra for long-distance calls—generally $.20 to $.25 per minute. 

If most of your calling is long distance and your plan does not charge extra for long-distance calls, the extra amount you pay for the convenience of being able to make those calls via a cell phone is small or, in some cases, nothing. Suppose you would pay $.06 per minute with your landline long-distance service. Paying an average of $.10 per minute, as you will with many cell phone service plans, means you are paying only an extra $.04 per minute for the convenience of calling via cellular service. 

Other Fees 

In addition to the charges for routine calls, your bill may include other charges. 

When you sign up for service and buy a phone, you will be asked to pay an activation fee of $30 to $36, although you might be able to have the fee waived under one of the frequent promotional programs offered by the cellular service companies, or you might be able to get a salesperson to waive the fee if you sign up for service at a retail location. 

Directory assistance calls, priced from $.75 (T-Mobile) to $1.29 (Cingular) per call, can easily add a few more dollars to your bill each month. 

Discounts 

Cellular companies often run specials. Check newspapers and the services’ websites, or call the companies’ “800” numbers for current promotional offers. Note that some providers will offer you three free months of wireless Web access and then automatically begin charging you for this service when the promotional period ends, unless you call up and cancel the feature. 

Time Commitments and Termination Costs 

One-year contracts are now the standard for all six of the providers we evaluated. Only Cingular and Sprint allow you to avoid signing a long-term contract, but with Cingular you won’t get any equipment discounts and with Sprint you will pay an additional $10 per month for their month-to-month billing options. Several companies offer incentives for signing a two-year contract. For example, when we last checked, AT&T and Verizon were waiving or discounting their activation fees if you signed a two-year contract, and for some plans Sprint was offering unlimited airtime for calls made between two Sprint PCS customers. 

Two years is a long time in the fast-growing, fast-changing wireless industry. The quality of each network can change considerably over time, depending on such things as capacity issues, technological developments, and infrastructure improvements, or lack thereof. At the very least, you should be absolutely certain the service works well where you need it to work well—such as along your daily commute and inside your office and home—before signing a two-year contract. 

All of the providers we evaluated will charge you a large fee, ranging from $150 to $200, for terminating your contract early. You can, however, switch plans with the same company during a contract cycle. See the sections below on Try-Before-You-Buy Options and Prepaid Plans for tips on avoiding early termination fees. 

Special Services 

All of the cellular companies offer a menu of advanced features and services, either for a fee or for free. Free services often include numeric paging, caller ID, voicemail, call waiting, call forwarding, and three-way calling. Fee-based services usually include wireless Web access, text messaging, and roadside assistance. Some of these services can be of particular value in connection with cellular service because they can save you substantial airtime charges. Caller ID, for example, allows you to determine whether you recognize the number of the person calling you before accepting, and paying for, a call. 

It is important to understand exactly how charges work for these services. If you retrieve voicemail messages using your cell phone, you will be charged airtime (and possible roaming charges if you are out of your home-rate area). Consider checking your voicemail from a landline phone instead. Also, when companies say call forwarding, call waiting, or three-way calling is free, that means that there is no monthly charge for the service; be aware that all the cellular companies will charge you airtime for these calls. For example, you pay airtime for the full duration of a call you have forwarded, and you pay double airtime—for both of the other parties on the line—when you use call waiting or three-way calling. 

Shared Plans 

Most of the carriers have special offers targeting families who need multiple phones but want to share the same pool of minutes and a single monthly bill. Verizon’s Family Share Plans, for example, allow you to share a pool of minutes with one to three other individuals, each with his or her own phone and phone number. You pay an additional $20 per month for each additional line on top of the regular monthly fee for that plan. In addition to sharing a pool of minutes, you get 250 mobile-to-mobile minutes that can be used to call the other family members on the shared account. 

Try-Before-You-Buy Options 

In order to follow our advice and try out a service provider before committing to a long-term contract and buying an expensive phone, you need to find plans that permit such testing. Only AT&T offers a 30-day trial period. Cingular, Nextel, and Verizon give you 15 days, and Sprint and T-Mobile give you 14 days. If you do decide to return your phone and cancel service, you will be required to pay for the airtime you used and any activation fee that you may have been charged. 

Many of these companies also run promotions offering a free basic cell phone when you sign up for service. Since the quality of cell phone service is much more dependent on the network itself than on the type of phone you use, you can get a good idea of how the network performs with even the most basic cell phone before buying a fancy phone with lots of bells and whistles. 

Prepaid Plans and Disposable Phones 

Our Sample Prepaid Plans Table shows a sample of prepaid plan options. For under $100, there are several prepaid packages that include a cell phone and $10 to $30 of airtime credit. Prepaid plans will be attractive to you if you want to try out a service before making a commitment or if you have poor credit. Prepaid plans also are a good option for parents who want to give their kids a cell phone for emergency use without worrying that the kids will rack up huge cell phone bills. You buy a set amount of minutes, and then minutes are deducted from the account after each use. More credit can be added to the account whenever you want, but service shuts off when the balance reaches zero. 

Depending on the wireless provider, you can purchase prepaid minutes in denominations as low as $10 or as high as $150—the more minutes you buy, the lower the cost per minute. The catch here is that the minutes expire within 15 to 120 days after the deposit is made. Some plans allow you to extend the life of your minutes if you add funds to your account before all of the minutes expire. 

In the near future, several companies are expected to launch a new type of product that will provide an additional alternative for low-volume users or people with credit problems—prepaid, disposable, recyclable cell phones. These will likely cost $30 to $40 and come with about 60 minutes of talk time that expires after three to six months. Some models will be rechargeable and allow you to purchase additional minutes. 

Money-Saving Tips 

For the convenience of cellular service, you must pay a price. But a few suggestions may help you pay less than you otherwise would. 

  • Shop for the cellular company and plan that will cost you least. Keep an eye out for discount offers. 
  • Ask for special discounts—both when you are initially signing up and when your contract is about to expire. Many customers get substantial price breaks or special incentives if they show that they are high-volume callers or that they have excellent payment records. 
  • Don’t sign up for more or fewer minutes than you are reasonably sure you will use. 
  • Don’t make cellular calls if there is a landline phone available. 
  • Don’t give out your cell phone number freely. 
  • Suggest to your caller that you call him or her back when you get to a landline phone. 
  • Take advantage of caller ID, voicemail, and numeric paging capabilities, if your service offers them, to screen calls before accepting them and to decline calls and call back from a landline phone. 
  • When checking the voicemail messages on your cellular line, call in from a landline phone, not from your cell phone. 

If you already have a cell phone, periodically check to see if your provider has a cheaper plan you can switch to that will meet your needs. 

Choosing a Phone 

We evaluated cell phone service providers, not phones. Consumer Reports, in an article in its February 2002 issue, evaluated the quality of several different phone models and discussed features you should look for. That article will be an excellent starting point in your phone selection process. 

The following are a few considerations to keep in mind when choosing— 

  • The type of phone you use will have little effect on how often you experience quality of service problems like dropped calls or access failures, since such problems are usually caused by the network, not the phone. 
  • The price range for phones is wide. Most of the six providers run frequent promotions offering you a free basic phone when you sign up for service, but there are also phones that cost $500 or more. 
  • Even today’s most basic phones often come with features such as two-way text messaging, the ability to store phone numbers and e-mail addresses, a one-year warranty, and a small screen to use for Web-enabled features such as checking stock quotes and sports scores. 
  • More expensive phones might include features such as voice-activated dialing, a datebook, speaker phone capabilities, FM stereo radio, larger displays, and a voice recorder you can use to record conversations or memos to yourself. Some even come with an operating system that allows you to use the phone as a personal digital assistant (PDA). 
  • Battery life can range from about 120 minutes to 360 minutes of talk time in digital mode and typically about half as long in analog mode. In standby mode, battery life ranges from several days to more than a week. Batteries that give you more talk time naturally also give you more standby time. 
  • There is much variation in size and shape of phones, with smaller phones typically costing more. Phones have even become a fashion accessory. 
  • You will increase your flexibility in getting calls through by having a dual-mode phone; it can switch from digital to analog mode if all digital circuits are occupied or if you are roaming outside of the reach of your carrier’s digital system. You get an even more flexible ability to make calls when traveling throughout the country if the phone can operate on both the 800 megahertz and the 1900 megahertz frequency bands. 

Just as it is a good idea to try out a cellular service, it is also wise to try out some different phones. If you are buying from a store, this will be a relatively easy task. In many stores the floor models are hooked up and you can make a free local call. 

Phone manufacturers typically specialize in providing phones that are programmed to work with a certain digital technology, such as CDMA or TDMA, and on a certain provider’s network. Sometimes the same phone model is sold by two different carriers that are using the same network technology, but that doesn’t mean that you can keep the same phone if you change carriers. 

You won’t find much of a market for used phones. Most of the local pawn shops we have checked aren’t interested in paying for used cell phones. The ones that are buying are interested only in the newer, high-end models. 

The cellular companies often offer a trade-in credit if you’re a new customer signing up for a plan, or an existing customer wanting to upgrade, but the credit is usually not more than $50. 

Cell Phone Safety 

Cell Phone Radiation 

Stories in the popular media have suggested that the weak electrical fields emanating from cell phones might raise the risk of brain cancer. Research is ongoing, but there has so far been no definitive evidence that using cell phones increases this risk. 

In January 2001, an editorial appeared in the New England Journal of Medicine, accompanying the results of a National Cancer Institute study on the subject. The authors wrote: “We believe that it is highly unlikely that the use of cell phones substantially increases the risk of brain tumors. The lack of empirical evidence of the carcinogenicity of radiation at the radio frequencies used by cell phones and the absence of a theoretical basis for nonthermal effects at these frequencies suggest that cell phones do not pose a risk of cancer.” 

SAR, or specific absorption rate, is a way of measuring the amount of radio frequency energy that is absorbed by the body. For a cell phone to pass FCC certification, the phone’s maximum SAR level must be less than 1.6 watts per kilogram. At www.cnet.com you can find a radiation chart that lists many types of cell phones and their respective SAR levels. But keep in mind that these measurements are not very reliable and can vary for the same phone as it is actually used. 

If you are concerned about radiation exposure from cell phones, you can keep distance between your body and your phone’s antenna by using a headset or by buying a phone with a speaker-phone feature. 

Using a Cell Phone While Driving 

In November 2001, New York became the first state to ban hand-held cell phone use while driving. Violators can be fined $100 for not using a headset or other hands-free device. There is similar legislation pending in dozens of other states. At least 28 countries, including Japan, Ireland, and Russia, have banned the use of cell phones while driving. 

Using a cell phone while driving can be a distraction that might lead to accidents. Whether or not it causes more accidents than are caused by drivers’ adjusting their car stereos or eating sandwiches or lighting cigarettes is a matter of debate. Regardless, a few precautions make sense. Don’t dial while driving and consider pulling safely off the road to make your calls. Headsets, voice-activated dialing features, and other hands-free systems are a good idea for those who simply must use their phones while driving. 

Pacemakers 

There is also some evidence that the radio frequencies from cell phones may interfere with heart pacemakers and defibrillators. For this reason, the Food and Drug Administration helped develop a test method to measure electromagnetic interference by cell phones on these cardiac devices. This test method is now part of a standard sponsored by the Association for the Advancement of Medical Instrumentation and will allow manufacturers to ensure that there is no dangerous interference between cell phones and cardiac devices. 

If you have a pacemaker and are concerned about interference from a cell phone, keep the phone away from your chest; don’t keep it in your breast pocket. Digital phones are more likely to cause pacemaker problems than old analog-only phones. 



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