There are now more than 200 million cell-phone subscribers, an average of more than one per household. Of those, close to 10 percent use a cell phone (a.k.a. a mobile phone) as their only phone, and that number is steadily growing. Phone manufacturers and wireless-service providers are promoting new generations of equipment that let users do much more than merely make phone calls.
Despite its popularity, wireless service has a reputation for problems: dead zones, where you can't get service; calls that inexplicably end in mid-conversation; inadequate capacity, so you can't put a call through when you want; hard-to-fathom calling plans; and errors in bills. Problems like those are why one-third of the cell-phone users we've surveyed say they're seriously considering a switch of carrier.
Switching is now easier than ever, thanks to the government mandate on local number portability. However, keep in mind that the phones themselves aren't portable. If you switch carriers, expect to buy a new phone.
What's available
You can find cell phones in many outlets, including carrier stores, independent wireless retailers, electronics stores, and Web sites. But the cell phone itself is only part of what you need. You also have to sign up for service with a wireless provider and choose a calling plan.
The providers. The major national companies are Cingular (which merged with AT&T Wireless), Sprint Nextel (two major carriers whose merger became final in 2005), T-Mobile, and Verizon Wireless. There are also many local or regional providers.
You'll often find phones described as tri-mode, dual-band, quad- or tri-band, or multi-network. Those terms describe the ways a phone can connect to one or more wireless networks, which affects the coverage your phone provides. Here are the specifics:
Tri-mode phones can access a digital network in two frequency bands and older analog wireless networks, giving you the best potential coverage in most areas of the U.S.
Dual-band phones can connect to a digital network in two different frequency bands. GSM (global system for mobile) providers often use the term 850/1900 MHz instead of dual-band. Dual-band phones work as well as tri-mode as long as you are in range of your home network.
Multi-network phones are compatible with more than one digital network, often in two frequency bands. Some can also access analog networks. These are best for people who travel frequently overseas and who are customers of Sprint, Nextel, or Verizon. Both Sprint Nextel and Verizon offer multi-network phones that operate on GSM networks internationally, and domestically on their CDMA (code division multiple access) networks (for the Sprint and Verizon phones) or iDEN (integrated digital enhanced network) networks for the Nextel phones.
Tri-band, quad-band, or "world phones" operate on GSM networks in both the U.S. and abroad. Tri-band phones with 850/1800/1900 MHz capability can operate on two bands domestically and one internationally. Tri-band phones with 900/1800/1900 MHz capability operate on one band in the U.S. (1900 MHz) and two bands internationally. Quad-band phones can operate on all four bands for maximum potential coverage.
The calling plans. Most providers offer a range of plans based around a "bucket" of calling time minutes. The more minutes in the bucket, the more the plan costs you each month. However, the total number of minutes isn't the most important figure. Some of those minutes may be good anytime, others available only on nights and weekends; if you exceed the allotment of minutes, you'll be charged 20 to 50 cents per minute, depending on the plan. Cingular and Sprint Nextel let you avoid wasting unused minutes by either rolling them over to the next month or adjusting your monthly quota. Most plans require you to sign a one- or two-year contract and levy a hefty fee if you want to cancel before the contract expires.
Prepaid plans can be a good alternative if you're averse to a long-term contract. Many wireless providers, as well as Liberty Wireless, Metro PCS, TracFone, and Virgin Mobile, offer prepaid calling. You pay in advance for airtime minutes, which typically last 45 to 60 days before they expire.
The phones. The major phone manufacturers are Kyocera, LG, Motorola, Nokia, Samsung, Sanyo, Sony-Ericsson, and UTS-Starcom (formerly Audiovox). Some phones are simple rectangles with a display window and keypad on the front. But most have a flip-open cover to protect the keys. Light weight is pretty much standard. All the newer phones can send and receive text messages up to 160 characters long to or from any other cell-phone user, and most phones now come with a full-color display. Phones equipped with cameras allow you to send and receive picture messages from other people, even if they're not on your network. You'll also see phones that can play games, offer wireless Internet access, or are combined with a personal digital assistant (PDA). Music and video programming from cell carriers are becoming increasingly common, and live TV via cell phone has also been launched, with more services coming.
Important features
Most service providers now offer Internet access and multimedia services using new high-speed data networks and selected phones. Sprint's Power Vision network and Verizon's V CAST network use an advanced CDMA format known as EV-DO (Evolution, Data Only) to boost transmission speeds. These networks comprise what is commonly known as 3G. Cingular uses an enhancement to its GSM network known as EDGE (Enhanced Data for Global Evolution). Some services, such as Verizon's V CAST video and Sprint's Music Store are only available through the enhanced networks. Other services, such as e-mail and Internet access, are available without having to access the enhanced networks, but tasks like Web browsing are much slower. One caveat: The newer networks aren't available in all areas of the country, so check your carrier's coverage maps before you upgrade your phone and plan.
Among basic cell-phone features, look for a display that is readable in both low- and bright-light conditions. Be sure it's easy to see the battery-life and signal-strength indicators and the number you're dialing. The keypad should be clearly marked and easy to use. Single-key last-number redial is useful for dropped calls or when you're having trouble connecting. Most phones these days have voice dial, which lets you dial someone's phone number by speaking their name. But the number and name have to be in your phone's contact list, and you have to program each voice-dial name — a time-consuming process. Voice command-enabled phones don't require training. You can dial anyone's number in your contact list, and even dial a number not in the list by speaking the digits.
In addition to ringing, most handsets have a vibrating alert or a flashing light-emitting diode to let you know about an incoming call, useful when you're in a meeting or at the movies. Handiest is an easy-to-mute ringer, which switches from ring to vibrate when you press and hold one key. Volume controls on the side let you change the earpiece volume level without moving the phone too far from your ear. You can't do that if the volume controls are on the keypad. A speaker phone boosts the earpiece volume and microphone sensitivity, so you can carry on a conversation without having the phone against your ear.
Some cell-phone models include a headset. That capability is sometimes demanded by various local laws for drivers using cell phones. A standard headset connector (also known as a 2.5-mm jack) is the most common type of headset connector. Phones with this connector are compatible with a wider variety of wired headsets. If you frequently use a headset but hate fussing with cords, consider a phone with Bluetooth voice capability, which allows you to use a cordless headset. Not all phones with Bluetooth are equal. Bluetooth data lets you transfer items like pictures and contacts to other Bluetooth-enabled devices like printers, PDAs, and computers. Bluetooth data capability is found on GSM phones but not always on CDMA phones.
Many CDMA phones have analog backup capability, which may be important if you travel through rural areas or places where your digital carrier doesn't provide service. Phones with analog capability can sometimes connect in places where digital-only phones cannot. Phones vary widely in keypad design and readability of screen displays, as well as in the ease of using the function menu or performing such basic tasks as one-button redial and storage of frequently called numbers for speed-dialing later. It's important to handle a phone in the store before you buy, to be sure that its design and your fingers are well matched.
How to choose
Begin by selecting a service. Finding good service where you want it can be a challenge. The best way is to ask your friends and business associates — people who literally travel the same roads you do — how satisfied they are with their cell-phone service. In addition, keep in mind that Verizon Wireless has consistently come in first in Consumer Reports satisfaction surveys and so is worth considering first, if it's offered in your area.*
Choose a calling plan. You need to determine when and where you'll be using a cell phone most in order to select a plan that's right for you. As a rule, a national calling plan (which typically eliminates extra long-distance charges or fees for "roaming" away from your home calling area) is worth considering first, even if you don't travel often. With a regional plan, roaming charges can add up if you make calls too far away from your home. No matter which carrier you choose, take advantage of any trial period to test the service and sign up for the shortest contract available, typically one year.
If two or more family members use cell phones, consider a family plan that lets up to four people share a large monthly pool of minutes for a smaller additional monthly charge. If you aren't sure how many minutes of phone time you'll use in a month, choose a plan with more minutes than you think you will use. It's often better to let minutes go unused than to have to pay stiff per-minute charges if you exceed your allotment.
Select a phone. You can spend as little as $20 or as much as $600 on a cell phone. You need to begin your selection in the right price tier. Once you've settled on a price range, follow these steps:
First look for practical features. Cameras, games, music players, and the like are appealing, fun, and even useful for some people. However, features such as a folding case, volume controls on the side, and an easy-to-mute ringer will prove useful every day.
Hold the phone. In the store, take the phone in your hand and make sure you can comfortably access most keys with one hand. Try to make a test call and access the menu items on a working demo. We've found that phones with unconventional shapes can be difficult to use. So are keys that are small, oddly shaped, or arranged in unusual patterns, especially if you're trying to dial a number in dim light.
Check the display. Most color screens perform well in dim light, but some are hard to see in daylight. Try the phone outside or under bright light. In our tests, phones that display incoming and outgoing numbers with large black type against a white background were the easiest to read under most conditions. Also make sure indicators such as battery life and signal strength are clearly visible.
Check the return policy. Make sure you can return the phone if you're not happy with it. Some stores attach stiff service-cancellation fees on top of what a carrier may charge.
Don't buy phone insurance. All major cell carriers provide insurance policies that cover lost, stolen, or damaged phones, typically for about $4 to $6 a month, with a $35 to $100 deductible. But we don't think those are worth buying. Besides charging for premiums and deductibles, some insurance plans require you to fill out a police report. And damaged phones are often replaced with a refurbished phone, perhaps not even the same model as the original.
*Union Plus tip: AT&T (formerly Cingular) Wireless is the only fully unionized wireless company. Union members save 10% off AT&T Wireless with the Union Plus AT&T Wireless Discount.
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