Five cell phone buying tips
Leah Gliniewicz

Cellular phone and personal communication services become obsolete so fast they make a dog year look as long as the Ice Age. As telecommunications technology explodes, there are more options and add-ons. So where does that leave you?

If you're jumping on the bandwagon for the first time, or if you're a current cell phone owner looking to upgrade, here are some buying tips to consider:

Know how you'll use the phone

"There's a tendency for new subscribers to underestimate the use of the phone," says Jeffrey Nelson, spokesman for the Cellular Telecommunications Industry Association in Washington, D.C. If your "emergency phone" becomes a daily necessity, you may need to change your billing plan from a per-minute charge to a "bucket plan" that comes with a large block of minutes at a fixed price.

Because of compatibility issues, it's important to view the handset and the service as a unit, says Matt Swanston, manager of communications for the Consumer Electronic Association, a trade association in Arlington, Va.

Phones are configured to work on the manufacturer's cellular service. So a Sprint phone is not compatible with Omnipoint Corporation digital service.

"Once you have a service, they offer you a limited number of specific brands of handsets. You're often locked in. The handset will only work with that network," Swanston says.

Shop for wireless service first

Joe Bradshaw, general manager of WirelessAdviser.com, based in Point Pleasant, N.J., recommends buying the handset and the carrier service from the same company -- but pick the service first.

"In the end, that's really the most expensive item in the whole deal," Bradshaw says. "What carrier you use is going to affect your overall satisfaction."

"You really want to interview people who have service," the CTIA's Nelson says. Ask family members and friends which service they have, the cost and whether they like it. Is there any difference between the way they thought they would use the service and the way they actually use it.

Some phones work only on analog or digital networks. Others are dual band, which means they work on both analog and digital networks. So if you're using the phone where there is no digital service, the phone will automatically switch to analog -- but you may be charged a fee each time the switch is made.

If you take a prepaid phone -- one that comes with a certain number of starter minutes -- you may get a less expensive phone than you would choose otherwise, and the service may not be up to snuff, according to Bradshaw. When those minutes expire, you pay in advance for more minutes.

"One thing is they don't tell you about the time limit. It's sort of a 'use them or lose them' with a time period. You really need to examine the fine print," he says.

Bradshaw also warns against "one cent" or "free phone" deals. He says you should pay for the phone upfront.

"It's a much better thing to do because when they say 'free' it isn't really free," he says. "The cost of the phone is built into the monthly payment, and you could end up paying more for the phone."

With more than 250 wireless companies in the United States, it's a buyer's market. It pays to research your plan carefully.

"They should keep in mind there's a lot of competition," he says. "These companies are trying very hard to get their business. By shopping around, you can usually get a better deal."

Shop around for service

First, you want to find out what companies offer wireless service in your community.

The CTIA's Nelson suggests looking in the newspaper or the phone book. Or check Web sites such as CTIA and WirelessAdviser.com that allow you to compare offers according to ZIP code.

"We are the poster child for competition in telecommunications," he says. He says that more than two-thirds of people live in a place where six or more companies are competing, and the average monthly bill for American wireless customers is about $42 a month.

Know exactly what the service agreement says

Your service provider could charge you if you place a call even if no one answers on the other end, or if you let it ring more than six times.

Or it could also be billing you from when you press the "send" button until you hang up with the "end" button, instead of billing from when you say "hello" to "goodbye."

Or it could even round up your time on the phone to the next minute, a move that can eat away at your time.

"It can use up your minutes quicker, especially if you're making a lot of short calls," Bradshaw says. "Be aware of what the policy is."

Generally, companies are trying to be very upfront about their charges, he says. "As long as you're aware of the policy I don't think it's a big deal."

Avoid lengthy contracts

Cell phone customers "should avoid signing a very long-term contract -- anything over a year -- because things are changing so fast in the industry," Bradshaw says. "They don't want to be locked in a rate when it's pretty clear that the rates are lowering in every instance."

-- Posted: May 2, 2000