Cellular Phone
Service
Whether used
for safety purposes or for convenience, the cellular telephone allows its
carrier to make and receive calls virtually anytime. Before purchasing a
wireless plan, however, you should understand what services you'll need and
what services are available. What seems to be an attractive plan may have
drawbacks that offset its advantages; careful self-assessment and comparative
shopping could save you a lot of money.
Before
deciding on a plan, ask yourself the following questions:
ANALOG vs. DIGITAL
Currently
there are two types of wireless cellular services available, analog and
digital. Analog technology is older and therefore available in more areas. The advantages
of using analog services include a larger coverage area and less expense; the
disadvantages are less clarity and fewer service options. Also, analog users
are more susceptible to cloning fraud, although service companies are
attempting to alleviate this problem through a technology called
authentication.
Digital
technology encodes and decodes information when transmitting a call, making it
more difficult to eavesdrop and allowing for advanced features such as
alphanumeric paging, text messaging, and caller ID, as well as offering clearer
sound and longer battery life. However, digital is not yet nationwide, making
it difficult to make or receive phone calls outside the service area. And
despite advertisements that digital services are offered without activation
fees, contracts, or early termination fees, users are often required to
purchase a digital phone that may not be compatible with other digital
services.
Generally, if
you need a telephone for outside the local service area and price is a concern,
analog may be your better choice. If you plan to make calls exclusively in the
local area, with sound and privacy outweighing cost, digital may be your
preferred choice. Finally, you may consider an option called Dual Mode that
combines both technologies in the same phone. With dual mode phones, if you
send or receive a call outside the digital coverage area, the phone
automatically switches to analog, and the cost is only $25 to $30 over the
price of a regular digital phone.
SELECTING A SERVICE
When selecting
a service provider, you should decide to and from where you will be making the
majority of your calls, then find out what is included in local plans and the
rates during peak and off-peak hours. Be prepared for costs in addition to the
monthly access charge, including activation fees, network access charges, early
termination fees, etc. It is important to select a carrier that provides
support with 24-hour customer service and account management.
The location
from which you make your calls is important in the billing process. Each
service provider designates a different local service area. Some plans consider
one county a local area, while other plans include the entire East Coast. Keep
in mind that when you are outside your local service area, you are roaming. All
plans charge separate roaming rates when you make a call from outside the local
area. Some plans have a flat rate for roaming and long distance calls, but all
service providers charge a fee for making a call outside the local service
area. Be sure to choose a plan that includes as "local" the areas
where you call the most.
Your monthly
statement of charges will depend largely on how many local minutes and features
are included. The greater the number of minutes offered, the larger the monthly
fees; long distance calls are generally not included. Additional perks - caller
ID, voicemail, call waiting, etc.- also vary widely
from plan to plan. If you need a feature not included in the package deal, you
may have to pay additional fees. Also, find out if the phone itself is included
in the contract or monthly charges, and ask about insurance on the phone in
case it is lost or stolen.
Once you've
determined how many "free" minutes are part of a plan, find out the per minute charges when your free minutes are up. The
amount you pay per minute usually varies according to the time the call is
placed. Peak hours, the busiest and most expensive time to make a call, are
Monday through Friday, 7 a.m. to 7 p.m. All other hours are generally considered
off-peak, but be sure to check with your provider.
WIRELESS vs. LANDLINE PHONES
Bear in mind
that unlike regular telephone services that only charge outgoing calls,
wireless services charge for local and long-distance incoming calls. That means
if you receive a long distance call - a call from someone outside your defined
service area - you may be charged for it, but at local minute costs. Some plans
also charge a landline fee, a fee for a call made to any regular telephone;
unless you correspond from your cellular telephone to another cellular
telephone, you may be charged a minimal landline fee, depending on the plan and
service.
Like regular
phone service, long-distance charges apply in outbound calls unless otherwise
indicated. If a company advertises that long distance calls are $.25/minute
during peak hours, your call will cost $.25 in addition to the local airtime
charges. When the long distance rate is added to the home airtime charge, the
call may end up costing $.75/minute or higher, depending on the plan. If you
make or receive a long distance call while roaming, you will be charged the
roaming fee plus long distance charges unless otherwise indicated, which could
mean you'd pay more than $1.00/minute depending on your plan.
Many cellular
services are considering a voluntary set of guidelines to help reduce customer
complaints and prevent government regulation. The BBB suggests you consider
asking potential providers about the following:
For more
information on cellular services, contact:
Better
Business Bureau
(800) 828-5000
www.bbb.org
Telecommunications
Industry Association (TIA)
(703) 907-7700
www.tiaonline.org
Cellular
Telecommunications & Internet Association (CTIA)
(202) 785-0081
www.wow-com.com/ctia
Federal Trade
Commission
(877) 382-4357
www.ftc.gov
Federal
Communications Commission
(888) 225-5322
www.fcc.gov
This report is
general in nature and is not intended as a reliability report on any company, service
or product.