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Cell Phone PlansYou are here: Electronics >> Cell Phone PlansUpdated January 2008Best wireless serviceIn the most recent J.D. Power and Associates study, T-Mobile's wireless service (plans start at *est. $30) performs particularly well, ranking highest in five out of six regions (including four ties) for overall customer satisfaction. Its only miss is in the Mid-Atlantic region, where Verizon Wireless (plans start at *est. $40) is the top choice. Verizon Wireless also ties with T-Mobile in the Northeast, North Central and Southwest regions. Verizon's main strengths are call quality, particularly in the Northeast, where Verizon call quality is significantly better than that of T-Mobile. T-Mobile generally shines, however, in customer service, cost and billing. To sweeten the deal, both T-Mobile and Verizon Wireless are now offering wider, more innovative options that could also save you money. For example, T-Mobile offers HotSpot@Home, which offers free unlimited Internet calls through your home's wireless Internet network or at T-Mobile Hot Spots. This addition could save you hundreds of dollars a year in calls even when you’re overseas, reports The New York Times. In what could be another positive move for consumers, Verizon is opening up its network so that customers can use compatible phones not sold through Verizon beginning in mid-2008. That means more choices for consumers, but critics say it doesn't mean you'll be able to use any phone; you'll still be limited to using CDMA phones, and the phone will have to be tested and certified to work on Verizon's network. Details on the plan are sketchy at this point. While Verizon and T-Mobile are usually ranked highest overall nationally, smaller regional wireless providers are also strong in their areas. Alltel (plans starting at *est. $40) ranks highly in a couple of areas, including Phoenix and parts of the Southwest, and parts of the Southeast such as Tampa, Florida. However, in the J.D. Power survey, Alltel doesn't score as well as T-Mobile and Verizon in other areas. US Cellular (national plans starting at *est. 40 for 450 anytime minutes) nabbed PC Magazine’s Editors' Choice award among contract cell-phone providers, even though it only serves 26 states. Its call quality is excellent in the North Central region, according to J.D. Power and Associates. Sprint and AT&T almost always rank lower in every region in most surveys. One interesting option is that US Cellular lets you add unlimited incoming calls to most of its plans for an extra $6 or $8 per month. Some packages include free incoming calls with no charge; it's $40 national plan, for example, gives you 450 anytime minutes, plus free incoming calls and unlimited nights and weekends. That can be handy if you tend to receive lots of calls, since your monthly minutes will only be used for calls you dial. US Cellular uses the CDMA network, and it partners with Verizon for roaming, which is free on its national plans. In most of the country, reviews say T-Mobile deserves first consideration. T-Mobile's pricing is usually less expensive than Verizon, especially if you make lots of calls. T-Mobile's Individual Basic plan gives you 300 anytime minutes per month plus unlimited weekend minutes. For $50 per month, you get 1500 anytime minutes and unlimited nights and weekends. If you live in the Northeast, Mid-Atlantic or West, however, Verizon is the better choice, since its scores for call quality in those regions is better than that of T-Mobile. Verizon's $40 plan gives you 450 anytime minutes plus unlimited nighttime and weekend calls. All the major cell-phone service carriers want to lock you into a one- or two-year service agreement when you set up a new wireless plan to prevent you from switching services. In 2006, households spent about $524 on their cell-phone bills compared to $542 for their home phones, according to government data. For 2007, cell-phone bills are expected to surpass landline charges as more people sign up for text messaging, video and music. Given these rising expenses, it's important to estimate how many minutes you'll likely use -- and the services you’ll need -- before you sign a contract. You're better off initially subscribing to a less expensive plan, then closely watching your usage. Any wireless carrier will be happy to let you upgrade your cell-phone plan. Using a cell phone abroadOne factor that might further sway your decision is international compatibility. Cellular companies in the U.S. use two main proprietary networks for their cell-phone service, which means that a cell phone made to work with Verizon's CDMA network will not work on a GSM network, such as those supported by T-Mobile and AT&T. This could be important if you travel overseas and would like to take your cell phone with you. Most European, African and Asian cell phones work on GSM networks. Be aware that American GSM phones and foreign GSM phones work on different frequencies, so you will need a tri- or quad-band world phone that operates on multiple frequencies. Once you're overseas, you can swap your American SIM card for the other country's SIM card. (The SIM card is the little chip installed in your phone, usually under the battery.) SIM cards can be purchased at stores abroad or online before you leave. See Best Research for more information. In order to swap SIM cards, you will have to ask your cell-phone service carrier to unlock your phone, allowing your phone to send signals on a different frequency. American companies will unlock phones for customers, but reluctantly, and usually only after you have been a subscriber for a set period of time. Make sure that you get a password to enter when you place the new SIM card in the phone, as it will not work without the password. Note that this does not mean that while you are traveling you will not be paying your monthly contract fees. The advantage of switching SIM cards is that a local SIM card gives you a local phone number, making in-country calls inexpensive (avoiding very high roaming fees). And incoming calls (even international calls) are free to you in many countries. However, CNet.com warns that voicemail messages can cost more than at home. Reviews say T-Mobile is the best GSM carrier, easily besting AT&T in nearly every performance factor. For international travelers who want to use their phone in other countries, T-Mobile has the best wireless service and cell-phone plans. Verizon has an option for international travelers, but it's not as efficient or inexpensive as going with T-Mobile and its GSM network and phones. Because most of Verizon's cell phones do not work in Europe, Verizon offers hybrid CDMA/GSM phones, like the Motorola MOTO Z6c World Edition (*est. $230 with a two-year contract). Although this would enable you to use the same phone on a Verizon CDMA network in the U.S. and on a GSM network abroad, the phones themselves are expensive, as are the per-minute charges. In addition, you are locked into a two-year contract. A cheaper solution might be to buy an unlocked GSM phone for use overseas. You can also check out web-based companies like www.unlock123.com, which will unlock Nokia phones for about $5. TheTravelInsider.info will do the same thing for most Nokia phones, along with many GSM world phones like Samsung, Siemens, Motorola and LG. Prices range from $5 to $30. Prepaid cell-phone serviceFor those who don't need so many minutes, or who simply don't want to pay so much for service, prepaid plans are an option. These plans are best for people who use their phones minimally (less than 300 minutes per month), have poor credit or have teenage children and want to limit their phone usage. The cost of prepaid cell service has fallen, and many plans which used to average about 25¢ per minute now offer them for as low as 10¢ per minute. Verizon Wireless has a 2¢ per minute plan, but it requires a relatively hefty $2.99 access charge for any days you use the phone. Cell-service providers recognize that there's an untapped market out there for prepaid cell phones, so there's a lot more competition, better pricing, wider phone selection and more features. We cover such pay-as-you-go cell-phone service in our separate report on prepaid wireless . All the major carriers such as T-Mobile, AT&T, Sprint and Verizon offer prepaid plans, but it isn't quite as easy as simply paying for minutes, using them up and adding more. All carriers have some kind of expiration policy, whereby you lose your prepaid minutes if they are not used in a certain amount of time, sometimes in as little as 30 days. Most plans let the minutes roll over if more time is purchased before the expiration date, and some have expiration dates as long as one year for larger purchases (typically $100). Prepaid cell-phone plans often include the same features as a regular wireless plan, including free nights and weekends with some plans, voicemail, caller ID and call waiting. Mobile e-mail and text and picture messaging, as well as downloadable games, are other available options. Important Features: Cell-phone plansExperts say you should consider the following when looking for wireless service:
Our Consensus Report shows how many times products are top-ranked by reviewers included in our
* Also see our Comparison Chart.
In the largest surveys, Verizon and T-Mobile are consistently rated best, with owners reporting a higher level of satisfaction. Verizon scores top marks in other reviews as well. T-Mobile works on a GSM network, which allows for use overseas, and T-Mobile's plans usually give you more minutes for the money compared to Verizon Wireless. AT&T also currently works on a GSM network, but it doesn't receive high ratings compared to T-Mobile. The super-regional carriers like Alltel and US Cellular also score well in call quality and customer service in their respective coverage areas.
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If you're considering switching carriers, you probably know that you'll be able to keep your cell-phone number (called number portability). However, you will need to buy a new phone from the new carrier. If you are still under contract with your old carrier, you'll probably pay anywhere from $100 to $200 for early termination. However, after consumer groups pressed to have termination fees dropped, T-Mobile began pro-rating its fee this year, and other national carriers may eventually do the same. Your new carrier will probably charge you a small activation fee, though. If you think you might want a phone for use in other countries, one option (aside from going with a GSM-network carrier) is to pick up an unlocked tri-band (900MHz/1800MHz/1900MHz) GSM phone; used ones are usually available on eBay. When you arrive at your destination, buy a SIM card for your phone. Be sure to buy an unlocked phone or to unlock the phone before you leave at a site like www.unlock123.com or TheTravelInsider.info. Smartphones, which combine PDA functionality, web services and sometimes music with a phone are popular, but be aware that you'll need a more expensive service package to send data over your phone or surf the Internet. Most unlimited data and voice plans can easily cost $80 or more per month. High-speed wireless Internet services like Verizon's EV-DO network can reach Internet speeds faster than broadband, but they can also be expensive. Also, the much talked about Apple iPhone is only available through AT&T. We have a separate ConsumerSearch report on smartphones . Pay-as-you-go cell-phone plans are also covered in our report on prepaid wireless . These are a good option for those who don't make many calls, those who want to control wireless costs or those with a poor credit history. Probably the biggest buzz right now centers on Google’s intention to enter the wireless market. According to The Wall Street Journal, Google is testing a version of an advanced wireless network at its headquarters in California. It’s also preparing to bid for wireless spectrum in 2008, which is a necessary building block for running a network. According to The Wall Street Journal, Google’s push "could potentially expand the availability and decrease the cost of high-speed mobile Internet access to consumers and broaden the wireless applications they use." Thus, consumers could move their handsets between carriers without the daunting restrictions that now exist. Google already makes applications, such as chat and mapping, that are available on cell phones. As the cell-phone industry becomes increasingly competitive, carriers are adding more extra-cost services to entice customers. According to The New York Times, GPS navigation is being used in ever more creative ways on wireless phones. For example, the pay-as-you-go carrier Boost uses a service called Loopt that lets users report their location to other Boost users. And TeleNav (www.telenav.com) has a service that can turn phones from Sprint, AT&T, T-Mobile and others into GPS navigation devices. You can beam your address to other TeleNav users, get traffic alerts or find Wi-Fi hotspots. When traveling abroad, you can get SIM cards from local cell-phone stores. Alternatively, an article by Eric A. Taub in the March 15, 2007 edition of The New York Times (see All Reviews) notes that you can purchase SIM cards before you travel at vendors like Cellular Abroad and Telestial. If you are interested in cell-phone technology and how mobile phone services work, an excellent place to start is How Stuff Works. Editors have compiled a lengthy article on how cell phones work that explains how they evolved, how GSM networks are different from CDMA systems and many other essentials. There’s a helpful buying guide at Wireless.org that covers everything from phone types to features to upgrades. For phone reviews, try CNet.com. You'll also find reviews of camera phones and smartphones at PC Magazine and elsewhere. Our own report on smartphones covers phone/PDA hybrids. CellReception.com is a searchable database that let users look for cell tower locations, read user reports of cell coverage and look for reception dead spots. DeadCellZones.com has a complaint database and a listing of dead spots in metropolitan areas. You can get detailed pricing and coverage information on the websites of each wireless service provider: Advertisement
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© 2008 ConsumerSearch, Inc. A service from 
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ConsumerSearch and ConsumerSearch.com are registered trademarks of ConsumerSearch, Inc. Other trademarks or service marks on this site are the property of their respective owners. ConsumerSearch is not sponsored by any source reviewed, and we accept no consideration or payment for including, excluding, or ranking any reviews, products or services in our reports.
* Pricing information is approximate as of the time this report was written and is based on observed market selling prices and/or list prices. Actual selling prices may differ.
