Choosing a Wireless Plan
Though the economy has seen its challenges lately, wireless
carriers are still receiving new business at healthy rates.
Presently about 45 percent of households in the U.S. have cell
phones, and that number is steadily increasing.1
So why would people want to get another phone and spend more money
during hard times? Well the answer is, quite simply, free nationwide
calling.
In the past, cellular users were put off by the occasional
breakups and loss of coverage that typified mobile phone use. But as
carriers built more networks and people became accustomed to
occasional problems, many of us started realizing how much money we
could save in long-distance fees by switching to cellular.
5000 Free minutes. Unlimited nights and weekends. No roaming
charges. Time Division Mulitple Access (TDMA). Code Division
Multiple Access (CDMA). Groupe Speciale Mobile (GSM). It's easy to
get confused when sorting through all the offers you read about
every day. In this article, I'll explain some of the differences
between the leading wireless plans and what you can expect from each
one. At the end of the article you'll find a table that spells out
the information at-a-glance. Using the table, you should be able to
contrast and compare and decide which plan suits you best.
The technology
There are actually 4 major technologies supported by wireless phones
in the contiguous United States today: CDMA, GSM, TDMA, and
Integrated Dispatch Enhanced Network (iDEN). Each uses digital
transmission to provide standard service and features (such as voice
mail, 3-way calling, call forwarding, and Caller ID).
For the most part, the different technologies have comparable
reliability and clarity, so the important consideration becomes:
where do you want to take your phone? If you plan to travel to
Europe, you'll want a GSM phone. Make sure, however, that both 900
MHz and 1900 MHz GSM networks are supported by the phone, because
the United States uses the former and Europe uses the latter. CDMA
is found in both Asia and Europe; and TDMA is found in South America
and Asia.
Nextel is unique in that it uses a technology called iDEN that
supports 2-way radio and has networks in more than 80 countries.
Previously, Nextel could not access networks outside of its own
footprint, but recently it signed a deal with Ericsson that will
eventually expand its network so it's compatible with CDMA
technology.
Roaming charges
Each carrier offers several plans, and one of the big differences
between them is the way the roaming charges are applied. "Local"
plans usually allow you to apply your free minutes to calls made and
received within your local network. "Regional" plans require you to
make and receive calls within a few states surrounding your home.
And "National" plans cover calls anywhere in the country.
Whenever you are outside of your plan's calling area, your
company will charge you per-minute fees for using other networks,
even if you have nationwide long distance and your provider owns the
network. So make sure to research your plan's coverage before you
take a trip or your telephone bill will skyrocket. For instance, a
trip I made to Chicago last year ended up costing me almost twice my
monthly fee for 25 minutes of roaming charges.
The phones
Plans often offer free or discounted phones to entice consumers.
Some phones let you dial by speaking a name; some feature clamshell
(aka flip-phone) designs; some double as personal assistants; and
some give you web access. But don't be swayed solely by phone
"deals" or you'll quickly find out how important the next category
is.
The coverage
Most plans will provide maps indicating where their service is
offered. For instance,
Verizon's Regional SingleRate West subscriber map shows that
their regional networks are located in states anywhere west of (and
including) MT, WY, CO, and NM.
Though coverage maps imply full reception in the indicated areas,
often this is not the case. I live in San Francisco, for example,
and for a while, I had Cingular wireless service. Despite living in
the middle of this tech-friendly city, I could not receive telephone
calls in my house or outside my coffee shop!
Probably the best advice I can give you in regard to coverage is
to ask your neighbors—in your specific area—how they like their
plans.
The plans
To avoid comparing apples with oranges and to avoid having an
overloaded and useless grid of information, I made a few
restrictions on which plans I compared in the table below. Here are
the assumptions:
- All plans offer 1-year contracts
- All offer nationwide long distance
- All exclude roaming charges within their network
- All feature monthly rates between $25 and $100
- All offer at least 150 anytime minutes
Important note! Rates, plans, special offers, features,
and extras change frequently. Make that very, very frequently.
Please use the table below as an example only.
Also note: wireless web access has not been considered in this
table.
Carrier
|
Price
|
Peak (Min.)
|
Off-Peak (Min.)
|
Charge/
Min. Over
|
Tech. Features/Extras |
Verizon
|
$35.00
|
300
|
3000
|
0.4
|
CDMA
|
|
$55.00
|
550
|
3000
|
0.35
|
CDMA
|
|
$75.00
|
900
|
3000
|
0.35
|
CDMA
|
|
$100.00
|
1200
|
3000
|
0.25
|
CDMA
|
|
Cingular
|
$35.00
|
150
|
3500
|
0.40
|
GSM
|
|
$50.00
|
350
|
3500
|
0.40
|
GSM
|
|
$100.00
|
900
|
3500
|
0.40
|
GSM
|
|
AT&T
|
$59.00
|
450
|
none
|
0.35
|
TDMA
|
|
$79.00
|
650
|
none
|
0.35
|
TDMA
|
|
$99.00
|
900
|
none
|
0.25
|
TDMA
|
|
Sprint PCS
|
$29.00
|
200
|
2800
|
0.4
|
CDMA
|
|
$39.00
|
350
|
3650
|
0.4
|
CDMA
|
|
$74.00
|
1000
|
6500
|
0.4
|
CDMA
|
|
Nextel
|
$49.00
|
200
|
0
|
0.35
|
iDEN Free 2-way radio
|
|
$59.00
|
500
|
0
|
0.35
|
iDEN Free 2-way radio
|
|
$99.00
|
1000
|
0
|
0.35
|
iDEN Free 2-way radio
|
In my opinion
Just from looking at the table, Sprint seems to offer the best
plans. I've used Sprint on both coasts and found reception to be
excellent, definitely better than the minimal coverage Cingular
supplies in San Francisco. In Cingular's defense, though, after
buying out Cellular One's networks their coverage reigns supreme in
Chicago and is much better than that offered by Sprint.
Verizon's distinct advantage is that its nighttime minutes begin
at 8 p.m., as opposed to the others, which begin at 9 p.m.
Unfortunately this means that Verizon's day begins an hour earlier,
at 6 a.m., as opposed to 7 a.m.
If you're looking for phones for your employees, the best option
is Nextel. Provide them with 2-way radios, and they can keep in
contact with each other for no cost at all. Nextel doesn't offer
night and weekend minutes, but if the phones are strictly for work,
employees shouldn't need after-hours minutes anyway. Another
advantage of Nextel is that their activation fee, at $252,
is $10 less than the others. Additionally, Nextel charges a maximum
of only $50 for activation fees per account. Unfortunately, as I
mentioned earlier, you can only use Nextel within its own network.
Presently you cannot roam outside of their coverage area.
Final comments
Overall, carriers have created their own niches in the market. In
the end, you'll have to figure out which features are most important
to you, and then make up your own mind which carrier and plan to
choose. But don't forget to ask your neighbors what plans they like.
Because if your plan doesn't have good coverage in your area, your
fancy phone will be as good as a wallet with no money inside.
1
http://investor.cnet.com/investor/news/newsitem/0-9900-1028-8824203-0.html
2 Most carriers will waive the activation fee for
a 2-year contract |