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A $10,000 Cellular Phone Bill!!!

May 31 '01 (Updated Jun 01 '01)

The Bottom Line A few wrong decisions, and you could end up stranded with no service, or a bill beyond your means to pay.

It seems that in this day and age, everyone has a wireless phone glued to their ear. The interesting part is that all of these people are not high priced lawyers working on a case, or kids trying to show off. Wireless phones have become a necessity of life. My employer is primarily in the wireless industry, and we also support many of the biggest players of the wireless industry, so needless to say, I have seen every promotion, type of service, type of phone, and type of coverage that you can imagine. I have decided that with all of the wireless hype out there, it is high time that I put out a comprehensive wireless buyer¡¦s guide.
In this review, I will cover everything from the type of phone you choose, to your service plans and coverage, to safety in using your wireless phone. I hope this answers your questions, but if I fail to mention something that would be helpful, let me know and I will add it.

Analog or Digital
One of the most common things that one hears in differentiating cellular service is if a service is an analog service or a digital service. Most sales representatives you will talk to will tell you that digital wireless service is the only type of service one should go with, but the choice is not that simple. The primary difference between analog and digital wireless service is the technologies that are used, and the features that are available. Analog wireless service uses radio waves to transmit your voice to the wireless tower, then on to the rest of the system. Digital actually converts your voice to packets of data, transmits that data then converts it back to your voice. Because digital service converts your voice to packets of data, the system is far more efficient, and will allow more services to be added to the phone. This does not mean, however, that analog phones do not offer many services that people need. For most analog carriers, you can get caller-id, voice mail, 3-way calling, and other common features found on most home phones. Digital service allows the carriers to offer services such as wireless internet, instant messaging, and other advanced features on their phones.

Why would someone choose analog?
The only real reason that someone should choose an analog wireless service over a digital service is if they live or work in a rural area. Analog wireless has been available for more than 20 years, while most carriers have only been selling digital for the past 4-5 years. In many rural areas, wireless carriers have not had the opportunity to build out their digital systems. Although the carrier may try to sell you a phone that will work in both a digital and an analog area, the power on the analog side is so reduced, that in very rural areas where there is not digital, you should not expect the phone to work very well.

What about all of the digital choices out there?
Most people choose to go with a digital service, both because of the low price, as well as the features available with that phone. In finally choosing digital, however, a whole new set of choices come up. Unlike analog wireless service, where if you get a phone on one side of the country, it will be the same as one purchased on the other side of the country, there are many types of digital technologies being sold. Each of these technologies is not compatible with each other. For the most part, people don¡¦t focus upon the type of digital technology they get, and instead just trust that their carrier of choice has chosen the best technology. I have seen many people have serous problems with their phones because they did not take into account the technology and how they were going to use their service, when choosing carriers.

Here are the main type of digital technologies sold in the U.S., their differences, and who the main carriers are:

„h CDMA
„h CDMA stands for code division multiple access, and is a digital technology that splits up each conversation into small bandwidth channels. CDMA is the most common digital service sold in the U.S. and is what is carried by service providers such as: Verizon, Cingular, and Alltel. PCS service, such as what Sprint uses, uses CDMA as it¡¦s underlying technology, but works at a different frequency than the aforementioned carriers. Because the greatest number of carriers through out the country use CDMA, CDMA technology has the largest footprint of coverage. There are few reasons that I would recommend anyone using any service other than CDMA digital service.

„h GSM
„h GSM is the most common used wireless service through out the world. For our readers in Asia and Europe, this is almost your only choice in wireless service. In the U.S., however, GSM is the least carried digital service. Only Voicestream and Nextel use GSM service, and its coverage is limited to the areas that these companies are licensed to service. The only reason I would recommend anyone who lives in the U.S. choose GSM digital service, is if they travel around the world a lot. If you spend any amount of time out of the country, and wish to use a cellular phone, GSM is almost your only choice. The unfortunate part about GSM service is that it is very limited in the U.S.

„h TDMA
„h TDMA, which stands for time division multiple access, is a digital service that compresses many conversations onto the same frequency, separating each packet of data by microseconds of time. AT&T is the primary carrier of TDMA service, and jumped on this technology because of the ease of co-locating TDMA equipment alongside their existing analog service. The biggest drawback of TDMA service is that the more customers a carrier has, the worse this service becomes. Because the technology breaks down each conversation into packets of time, the busier the service, the more the signal becomes degraded. This is the only type of wireless service that I know of that is actually worse in larger cities, than it is in rural areas. I would only recommend choosing a carrier that uses TDMA digital if you have a lot of positive recommendations from people in your area, as to the quality of the service, and you do not travel much.

„h 3G
„h A few companies, such as Alltel and Verizon, are starting to establish third generation technology in a few of their larger markets. Most 3G technology is based upon the CDMA platform, but will provide even more services to the users. In Japan, 3G providers are able to offer video conferencing, packet data, and Bluetooth type services to their customers. Currently, 3G systems are in the trial phase, and I would only recommend choosing this type of service if there is a special function you need your service to provide.


What service plan to choose?
Once you have decided what type of service you want, the next, and probably most important, step is to decide what service plan is best for you. The very most important thing to consider when choosing your service plan is: You get what you pay for. Unfortunately, most people just jump on the cheapest plan with the most minutes. These are the people you hear about who come to Epinions complaining about their $700.00 phone bills. Wireless advertising is very deceptive as to what kind of plan you are getting. Most companies focus on the big numbers, and do not tell their potential customers how those numbers break down. For example, one carrier is currently offering 2100 minutes for $29.95, and another is offering 200 minutes plus free weekends for the same price. From face value, one would think that the first carrier¡¦s deal is far better than the second, but when you get to the fine print, you will see that the first carrier¡¦s minutes break down to 2000 weekend minutes, and 100 weekday minutes. The second carrier actually offers the customer over twice the minutes for the same price as the first carrier.

Choosing the best service plan is not only a question of seeing through the slick advertising. Each carrier has a wide variety of service plans to fit every possible customer. You will first need to decide how much I plan to use my phone, and where do I want to use it. Do not short change yourself here, be honest as to what you will use, then double it. After reading hundreds of reviews on various wireless companies here, most people seem to complain that the bill is not what they expected. I would bet 99% of this is not due to any misrepresentation on the customer¡¦s part, but on the customer using their phone far more than they were planning to. Just like a kid with a new toy, most people who first get a cell phone want to play with every thing on it. This amounts to a lot of airtime usage, and big bills. So shoot high on how many minutes you think you will use, you can always change it later. (Please be cautious; some companies, such as AT&T charge you a fee each time you change your service plan.) One then will need to decide where they want to use their phone. Consider where you drive ever day, and where you vacation to, then carefully examine each companies coverage maps. It is important to realize that the larger the coverage a company offers, the smaller the minutes. Most companies have plans that are broken down by coverage and type of service. Generally, this amounts to Local Plans, Regional or Statewide Plans, Nationwide Plans, Prepaid Service, Business Service, and Government Service. Each of these types of service has their own advantage, it all depends on how you plan to use your phone.

„h Local Service
„h Generally, a simple, local service plan provides the lowest monthly cost for the highest amount of minutes. What one needs to be careful about knowing where this local service extends. With most companies, their local service plans have roaming and long distance rates whenever you leave the area specified with your plan. Roaming rates can vary from .35 to .99 cents per minute, depending on your carrier, and your location. If you live, work, and travel 99% of the time with in a company¡¦s local area, then choosing this type of plan is usually the best. With any plan you choose, the higher the cost of the plan, the more features come with that plan. If you are wanting a lot of features on your phone, check to make sure the cost of these features do not exceed the cost difference of a plan that includes these features.

„h Regional or Statewide Service
„h Most companies offer extensions to their local coverage area so their customers can use their service in a larger footprint, with out paying higher roaming charges, or sacrificing airtime. You generally will pay a fee to extend your coverage area, or the company will have a different type of service plan available. You should expect to either pay more for this type of coverage, or expect fewer minutes available for you to use.

„h Nationwide Service
„h Most companies advertise their nationwide services more than any other of their services. This is because at face value, they seem to offer the user the most benefit for the money. In reality, most of the time, these plans offer the least value. Normally, these plans offer the customer the fewest minutes for the highest cost. This is because wireless companies actually will loose money every time you make a long distance or roaming call on that phone. In order to make a profit, and thus stay in business, they must make the plan fit the cost to them. People should only choose these plans if they travel extensively or spend a lot of money on long distance each month. If used wisely, these plans could actually save you money on your home long distance, but you have to be careful to account for the minutes available with the plan.

„h Prepaid Service
„h For many people, their credit or their budget prevents them from getting a wireless phone. Most carriers offer a type of service in which you pay for your minutes in advance, and requires no credit check, no contract, and no monthly service charge. In many cases, you don¡¦t even get a bill in the mail. These plans are perfect for parents who want their kids to have a wireless phone, but do not want to risk their running up a high bill. With prepaid service, you are normally limited to a small calling area, and are unable to use the service outside that area. The minutes on most prepaid services are also quite expensive, so be sure to compare the final cost with just getting a regular service plan.

„h Business and Government Service
„h If you work for a large company, or any government agency, be sure to bring this up when shopping for your wireless service. Many wireless companies have special ¡¥unpublished¡¦ rates for employees of certain companies or teachers. These deals will vary from company to company, but they usually involve a lower cost on the service plan, or more minutes.


Choosing your equipment
My best advice for choosing what actual phone to use is to remember that you will get what you pay for. Rarely should anyone choose the cheapest phone, as it is, the cheapest phone in quality, and reliability. Most carriers have actually stopped giving away phones, and this is to the customer¡¦s advantage. Giving away phones is another loosing prospect for most wireless companies. The loss they get in giving away phones is usually turned around in costlier service, or poorer quality service. In choosing a phone, I recommend looking to see what type of phone the sales representatives use. They will know what equipment works best for the service they offer. Motorola, Nokia, and Kyrocea (Qualcom) are considered the leaders in mobile phones, and I would suggest choosing from one of these manufacturers. Epinions is really the best resource for seeing what kind of service people have had out of various phones and phone models. Ask yourself, what phone is comfortable to hold and use? When it comes down to it, comfort is far more important than what games are built into the phone. As an important safety issue, consider purchasing a hands-free microphone, or ¡¥ear bud¡¦ for your phone, so you can keep your eyes on the road while talking on your phone.
I have written a few reviews on some of the phones I have used. These reviews should help you see what really makes one phone stand out over the others.

Motorola ST7868
http://www.epinions.com/elec-review-60F-3092216-396F3440-prod1

Motorola Profile 300
http://www.epinions.com/elec-review-6A83-1C21B503-39E2125C-prod3

Motorola SC3160
http://www.epinions.com/elec-review-3D8E-3D39A352-3A22FBE8-prod6

Motorola V3620
http://www.epinions.com/elec-review-7E4-1108E6B8-3A282064-prod4

As soon as Epinions has the Motorola V60 available to review, I will post my opinions on my newest cellular phone of choice.

Purchasing a wireless phone is not like buying a mop. A few wrong decisions, and you could end up stranded with no service, or a bill beyond your means to pay. Before you become one of the cellular horror stories, check out every aspect of the service. Choose wisely, so you do not have to become a negative review.

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mnehr

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mnehr
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Member: Matthew
Location: Texas
Reviews written: 72
Trusted by: 192 members
About Me:
A Republican, Neo-Conservative, Quasi-Libertarian, MBA. Confused yet?


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