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How To Buy A Cell Phone
by
Harry L. Parson III

How To Buy A Cell PhoneWhen I was a student in the late 80s, wireless phones were unavailable to the general public, much less to students.  Instead, students had to wait in line to use a payphone, (remember those?). Lucky students had long distance calling cards. Very few students had hard-wired phones in their dorm rooms. Having a phone line in your room was almost as valuable as having a car on campus.

In 1987 there were fewer than 6,000,000 cellular subscribers in the United States. By the end of 1997 that number had increased to over 55,312,000, and today, according to EMC, an independent source for operational data and analysis on the wireless industry, subscriber numbers passed the 1.5 billion mark in the first week of June 2004.EMC forecasts that global net additions of more than 240 million in both 2004 and 2005 will set the mobile industry up to break through the 2 billion subscriber mark as soon as July 2006.   Wireless usage has exploded and continues to grow.

When selecting a wireless provider, you must understand the various calling plans. Be aware of or prepared to monitor your own calling patterns and plan to stay within your communications budget. Don't get caught up in the "cool" factor i.e., don't select a wireless provider because it offers a device that you just have to have.  Select a provider on the basis of your calling needs and your budget.  Rest assured, most providers have "cool" phones.  Keep in mind that even if you get a great deal, wireless is usually more expensive than regular phone service. Only you can say how much you want to spend for your wireless service, but no matter how much it is you want to get the most value for your money.

Because there are so many carriers and calling plans to choose from, selecting a wireless provider and a handset has become a nightmare. I tried to build a spreadsheet that would compare and contrast all of the top wireless-company calling plans, and I almost pulled my hair out. I majored in English, not Math. You don't have to be Einstein to select a wireless provider, but you do need to know something about the wireless industry, its terminology, and your wireless needs to make an educated decision.

Wireless providers focus on three things: signing more subscribers, keeping those subscribers under contract, and driving ARPU (average revenue per user). Have you ever called customer service to report a problem and been forced to wait for more than 30 minutes? I spent forty-five minutes on the phone trying to correct a billing problem (which was never corrected by the way) and when I called a new provider and followed the prompt that said, "To order NEW service, press 1," my wait time was less than 15 seconds. Have you ever talked to a sales representative at a wireless store and he started talking in acronyms and technical terms you really didn't understand? It happens everyday.  If you take some time to learn the language used by wireless industry personnel, you won't be intimidated into buying the wrong service. Without getting too technical, I will try to provide you with some of the most frequently used wireless acronyms and terms.

The four largest carriers in the US use GSM (global system for mobile communications), CDMA (code division multiple access), TDMA (time division multiple access) or iDEN (integrated digital enhanced network). Even though Analog networks are still used in many parts of the world where digital technology is unavailable, I wouldn't recommend buying an analog phone, because they are prone to interference, static, eavesdropping and cloning.  Seventy to eighty percent of the world's wireless subscribers use GSM technology or something more advanced, but in North America GSM, CDMA, and TDMA dominate. Many carriers use the SIM card (subscriber identity module) or smart card. The SIM card looks like a tiny credit card that resides (usually) under your battery; it identifies you to the network as a subscriber and holds your wireless plan. These smart cards can be transferred from wireless device to device, as long as the device is with the same wireless carrier. TDMA phones don't have SIM cards. TDMA phones are identified by an ESN number (electronic serial number), which is embedded in the phone. ESN should not be confused with MIN (mobile identification number) or IMEI (international mobile equipment identity). Simply put, your MIN is your telephone number and your IMEI is the manufacturer's serial number on GSM phones.

Those who don't understand the value of time tend to waste it. In the world of wireless time is broken into minutes. There are several types of minutes to consider: ANYTIME, (MTM) MOBILE-TO-MOBILE, (N&W) NIGHTS & WEEKENDS, PEAK, OFF-PEAK, POOLED, (PTT) PUSH-TO-TALK, SHARED and ROLLOVER. In wireless, ANYTIME is not anytime. ANYTIME really means PEAK: PEAK minutes are what we are really paying for these days, because that occurs when the network traffic is usually highest, i.e., wireless rush hour. PEAK minutes are usually between 8:00AM and 9:00PM Monday through Friday.  MOBILE-TO-MOBILE minutes (calls made between mobile devices using the same carrier) are cheaper for the wireless providers to complete because there is less switching taking place. Make sure you have unlimited Mobile-to-Mobile in your next calling plan.

Push-to-Talk minutes are available from Nextel. Others have tried to market PTT but Nextel leads the way in the 2-way radio market. CB radios, police radios and walkie-talkies designed for family use would all be examples of PTT. If your family and friends are in the construction business Push-to-Talk is for you.

Cingular Wireless is the only provider that offers Rollover minutes. With Rollover you can rollover any unused minutes into the next month. You don't have to do anything – your unused ANYTIME minutes are automatically carried over into the next month. Rollover minutes are used before your normal monthly inclusive minutes. The maximum monthly rollover is the equivalent of your inclusive monthly minutes and is only good for one year, so you won't be able to accumulate endless amounts of talk time. Rollover minutes are great if you constantly under utilize your ANYTIME minutes or if your calling pattern fluctuates up and down every month. On the other hand, if you always have a lot of minutes rolling over to the next month, you probably have a calling plan that has too many minutes and thus you are probably paying more than necessary.

Most carriers are giving away NIGHTS & WEEKENDS and Long Distance (in the Continental US) and very few are charging for ROAMING. ROAMING occurs when calls are handed off to another carrier. If you travel too far away from your carrier's cellular towers your phone will roam or get no signal at all. Cell phones roam all the time; you just don't know it. Moreover, you shouldn't have to pay for roaming anymore. Make sure your carrier does not charge you for roaming or it may cost you 60 cents per minute.

POOLED and SHARED minutes are really the same things with a marketing twist. We refer to POOLED minutes (usually for businesses) when several users on the same account use their minutes collectivity. For example, User 1 has 500 minutes, User 2 has 1000 minutes, and User 3 has 1200 minutes.  Collectively that account has 2700 minutes that all three employees can use. SHARED minutes is an advertising term used to sell to families. For example, a parent pays a large amount of money for a big block of ANYTIME minutes and all the children get an inexpensive or free phone and share the minutes. Monthly monitoring of user usage is critical if you expect to get the most out of Pooled or Shared plans.

SMS (short message service) or text messaging has become increasingly popular. Users can send short text messages from a handheld device or pc to another handheld device or pc. SMS is wireless chat. Be careful not to abuse text messaging. Some carriers charge (per message) for incoming, some charge for outgoing, and other charge for both.

Bluetooth is the code name for a very hot wireless technology that enables data connections between electronic devices such as desktop computers, wireless phones, electronic organizers and printers. Driving while talking on your cell phone is inherently dangerous and several states already require earpieces or Bluetooth connections. Bluetooth is here to stay.

Understanding what you are about to purchase is important. Understanding the terms and conditions of that purchase is equally as important. If you hate your current provider the end of your contract seems like a lifetime away but if you love your provider, you probably don't even know when your subscriber agreement expires. Don't sign a two-year agreement so you can get a break on the cost of a handset. Pay the extra money for the phone and sign a one-year contract. If you have a contract with your current carrier, you are required to honor the full term of your current contract or you will be charged the termination fee that is specified in your subscriber agreement. Read the fine print!

Still, the question remains, "What would be a good calling plan for a college student that won't cost an arm and a leg?" I would stay with the big boys. That is Cingular, Verizon, or Sprint. If you attend an institution in a rural area make sure your provider has full coverage. You can get calling area maps from a retail store or their web sites. I would also select a national calling plan that includes, at no additional charge, nationwide long distance, unlimited mtm, unlimited n&w, no charge for roaming, caller ID, call waiting, three-way calling, and voicemail. If you are going to use a wireless device without a hardwired phone in your place of residence get at least 1800 anytime minutes. That will give you approximately one hour of talk time per day. If most of your family and friends are using a particular carrier consider using the same provider so you can take advantage of the free mtm minutes. If a cell phone is just your secondary phone a 900-minute plan should serve your needs well.

5 Steps to Wireless Service

  1. Think about how, where, and when you will use your phone

  2. Think about how much you want to spend each month for wireless service

  3. Determine which companies provide wireless service in your area.

  4. Investigate each carrier's calling plans, rates, features and phones as well as their contracts.

  5. Match a plan to your needs and budget.

Understanding wireless terminology, calling plan options, monitoring your calling patterns, and staying within your communications budget are all extremely important unless you enjoy overspending.  Happy hunting.


Harry L. Parson III

 

Harry L. Parson III is a specialist in telecommunications.


 

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