12 Jun 2005

Choosing a Cell Phone Plan

Once you've chosen the company that will provide your cell phone service, you need to decide what cellular plan is most cost-effective. What to look when comparing cellular plan options depends on how and when you anticipate using your cell phone.

How Many Minutes Do You Need?

When will you use your cell phone? Cellular plan contracts usually come with a set number of "peak minutes" and a large or unlimited number of off-peak minutes. The number of peak or "anytime" minutes is sold in blocks and is the main feature cell phone providers use to distinguish their plan options.

Most cellular plans include free mobile-to-mobile minutes, which means you can call others who use the same cell phone service provider without using up any minutes. Think about how much of your talk time -- to other cell phone users who are not on your carrier --falls within your cell phone provider's peak period during the day. Keep in mind that the exact start and end times for peak minutes varies from carrier to carrier. If you think your usage falls somewhere in between two cellular plan blocks, think conservatively and pick the plan with more minutes, because overtime minutes (charged when you use more minutes than your plan allows) are more expensive and can add a hefty sum to your cell phone bill.

If you know you'll mainly use your phone in the evenings or during the weekend, you should focus on the cellular plan's off peak or "night and weekend" minutes. Since most cell phone providers include long-distance free, many people use their cell phones instead of their landline phones to call friends and family long distance. If this is an attractive option, make sure your cellular plan includes enough night and weekend minutes to cover that talk time; otherwise you'll be paying overage charges, which defeats the point of no long-distance charges.

Where Do You Need to Make Calls?

Where will you use your cell phone? Roaming charges are fees that apply when you use your cell phone outside your primary calling area or use a different provider's network. Being outside the cell phone provider's coverage area doesn't mean you don't get any service; it simply means that your call will be handled by whatever system is available to handle the call. Normally your phone will indicate when you're roaming so you're not in for a big surprise when your cell phone bill arrives in the mail (or your inbox, if you pay your bills online).

Most cellular plans now offer pretty wide roaming areas, but you should be sure you understand where roaming charges begin to apply. If you travel a great deal, look for a cellular plan that has no roaming charges so you don't rack up unnecessary fees.

Have You Considered Other Cellular Plan Options?

Consider whether a family plan or shared plan is a good option for you. This type of cellular plan could potentially cost you less per person -- and you still have a great selection of free cell phones to pick from. When making your purchase online, just select the option for "family plan" or "get 2 phones" that appears on most cell phone offer pages.

For cell phone users who plan to use their phones only in emergencies, or those who don't want to undergo the cell phone provider's credit check, a prepaid cellular plan can be a good option as well. However, both the cell phones and the per-minute costs are lower with a service contract of one or more years. Those are the plans where cell phone providers are willing to give away free cell phones to attract your business.

Related article: Buying Your First Cell Phone

Additional Resource: Cell Phone Plan Basics

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