Cell Phone Plan Review

Navigating cell phone carriers and service plans

We've split our coverage of cell phone plans into two reports. This report compares traditional cell phone plans, which usually require a two-year contract. You may also want to consider a pay-as-you-go prepaid wireless plan. Once considered a last resort for people with bad credit, prepaid wireless plans have evolved into a good option for anybody, experts say. We cover these plans briefly in the Prepaid Cell Phones section of this report, or see our separate report on prepaid wireless for more information.

It's not easy to compare cell phone plans and service. You can't, for example, test the same cell phone in the same location using Verizon and T-Mobile. That's because there are two different network technologies at work. A mobile phone made to work on Verizon's CDMA (Code Division Multiple Access) network will not operate on T-Mobile's GSM (Global System for Mobile) network. Even if you could use the same phone to test multiple wireless plans, you'd only have results for one particular location, and as you probably know, you could walk 500 feet away, try the test again and get different results. In 2009, PC World and Gizmodo.com did manage to design illuminating tests of 3G speeds. They test the biggest U.S. wireless networks from major U.S. cities to find out which networks are the fastest and most reliable -- but they come up with different winners.

The most effective way to judge cell phone service is still through massive owner surveys -- a consensus of opinion comprehensive enough to conclude which wireless carriers have the best network coverage, the fewest circuit overloads, the least number of dropped calls and the most effective customer service. Two of the publications included on the Our Sources page have the budget and wherewithal to do just that. J.D. Power and Associates polled more than 25,000 wireless customers for its 2009 survey, and ConsumerReports.org surveyed nearly 55,000 of its subscribers in 26 major cities. No other reviewers could come close to matching the efforts of these sources.

The verdict? To put it mildly, reviewers frequently feel frustrated with all cell phone carriers. Often, the problem isn't the service itself -- it's the way the companies treat their customers. "Verizon's New Motto: Why Not Be Evil?" is the headline on a The New York Times blog post by David Pogue, who gripes about Verizon's decision to double its early termination fee (now $350 for people with smartphone contracts) and more. Mike Elgan's recent column for Computerworld -- "Wireless Carriers: 10 Things I Hate About You" -- discusses why "U.S. carriers are some of the most backward, unscrupulous and anti-customer companies in the nation." Many customers agree: In a 2008 article titled "Why We Hate Cell Phone Companies," MSN.com's poll finds that the entire cell phone service category qualifies for its Worst Companies in America Hall of Shame.

Two main complaints keep cropping up, according to MSN. Customers say they hate the time-wasting way cell phone carriers handle customer service calls, ping-ponging callers from one representative to the next, none of whom seem capable of solving anything. And when the monthly bill arrives, all of the tacked-on extra charges leave customers feeling cheated. A March 2009 article in The New York Times headlined "Messy Cellphone Bills Hide Real Cost" notes that for $5, a website called FixMyCellBill.com will analyze your bill and point out charges you shouldn't be paying.

"The fact that there are companies whose sole mission is to help consumers figure out their cellphone bills is a decent indication that the industry could be doing a better job on this front," reporter Bob Tedeschi concludes.

Over the past several years, the industry has undergone a wave of mergers: Cingular with AT&T, Nextel with Sprint and Alltel with Verizon Wireless. However, only Verizon Wireless has managed to amass a consistent nationwide network, according to reviews. Sprint's call quality is rated average or worse in every region of the U.S. by J.D. Power and Associates, and a press release from ConsumerReports.org says AT&T now ties with Sprint as the worst carrier in its survey. Other reviewers echo those findings, noting that dropped calls and customer service are particular sore spots.

Network functionality, however, will become increasingly important as cellular phone options and services continue to grow. Features ranging from streaming television, web applications and data transfer to mobile shopping, GPS navigation and 911 emergency updates are becoming more and more popular with cell phone users. PC Today reports in its February 2009 issue that "mobile web connections will outnumber those made via desktop devices by the year 2020" and that the current number of 16 million users downloading navigation routes will increase to 70 million by 2014. Consequently, a carrier's network capacity, speed and ability to consistently deliver these services will be a key consideration when choosing a cell phone plan. More information on network technology -- both existing and emerging -- is listed in the Useful Links section of this report.