How To Buy A Cell Phone
by
Harry L. Parson
III
When
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
-
Think about how, where, and when you will use your
phone
-
Think about how much you want to spend each month for
wireless service
-
Determine which companies provide wireless service in
your area.
-
Investigate each carrier's calling plans, rates,
features and phones as well as their contracts.
-
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 is a specialist in
telecommunications.