Choosing a Cell Phone Plan

Whether you're a first-time cell phone user or are switching cell phone plans, choosing a plan can be a very difficult and confusing process. Of course, cost is generally a primary concern, but there are many other factors that you must consider, including reliability and plan features.

Cell Phone Plan Considerations

When choosing a cell phone plan, you'll want to consider the following:

• Calculate the price you are willing to pay. When choosing a plan and talking with cell phone companies, ask for an estimate of your phone bill. With activation fees, the first bill will be higher than normal. However, the bill will typically level out to the same monthly fee.Watch out for extra charges, such as taxes. Some of them are quite high. Taxes are a necessary charge, but your cell phone company may be charging you for things you don't need, such as text messaging and Web service. Check the details of your service plan and see what features are included.Also, you'll want to decide whether or not you want to pay for insurance. Cell phone insurance will often replace your cell phone if it is lost, stolen or broken.Before signing with a company, ask what you'll have to pay if you go over your monthly minutes. Some service providers charge a high fee for extra minutes.
• Determine what features you will want. You may decide that you want a phone that can send text messages and photos or even surf the Net. Most of today's phones have text messaging capabilities and often come with a built-in camera. If you want to access the Web, however, you'll need to buy a particular type of phone, such as a BlackBerry.
• Estimate the number of minutes you will use each month. Cell phone companies usually determine your bill by how many minutes you spend on your mobile phone each month. Many plans offer you minutes in 500-minute increments.Before signing up for a cell phone plan, you'll need to figure out how many minutes you talk on an average day. To determine how many minutes you will use per month, multiply this number by 30. Of course, the number of minutes you will need will also be impacted by whether or not the plan offers free night minutes, weekend minutes, etc.
• Figure out what service and how much coverage you will need. Most cell phone plans let you choose between two types of service: analog and digital. Analog costs less but does not include digital features, such as eavesdropping protection and text messaging. With digital service, you can send text messages and photos and access the Internet, depending on the type of cell phone you own.There are three types of wireless plans:
  • Local calling plans allow you to make calls within a certain area, such as a metropolitan area or part of a state, without incurring long distance charges.
  • Nationwide calling plans allow you to make calls anywhere within the United States without paying any long distance charges.
  • Regional calling plans allow you to make calls within a state or group of states without incurring long distance charges.

Without knowing your specific coverage, you may end up roaming or making a call outside the cell phone network plan. This can add considerable fees to your monthly service. Ask the cell phone provider to show you a map of your coverage area.

Also check with the provider to find out how much it will cost you to place international calls.

Cell Phone Contracts and Free Cell Phones

As far as your plan is concerned, you may be able to get a free cell phone if you are willing to enter into a one- or two-year contract. If you don't like the idea of contracts or the idea that you will be charged if you break a contract, you may want to consider a prepaid or pay-as-you-go plan.