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Personal Finance > Saving and Spending
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Going mobile: Shopping for cell phones
graphic October 16, 2001: 3:07 p.m. ET

Part 1: The basics
By Bernard Yee
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NEW YORK (CNNmoney) - If you've finally decided to buy a cell phone, or if you're considering changing your cell phone service, get ready to face a mind-twisting array of phones, features, and plans. AT&T, Sprint, Verizon, Voicestream, Nextel and Cingular and other carriers are looking to snare you with "free" minutes, big no-roaming regions, sexy new equipment and promises of wireless Internet access.

The first step in choosing a plan is to honestly assess your needs. You'll have to consider the place you live, where you travel, what your calling patterns will be, how much you tend to talk, and what kind of extra functionality you want out of a phone.

The basics

Usually, you'll want to choose your service provider (for example, Sprint, Verizon, etc.) first, then choose your phone from what the ones that will work with that service provider. Don't pick a fancy phone only to find out later that it won't work with the service provider you choose.

Time is really important. Most service providers will give you a certain number of "free" peak-time minutes as part of your billing plan. They'll also usually offer you cheap or free "nights and weekends" minutes to use even after you've used up your pre-paid allotment of "free" minutes. (The definition of "nights and weekends" can vary.)

The trick is to find the plan that's right for you. You don't want to pay for cell phone minutes and extra services you don't need. You also don't want to try to save money by paying for fewer "free" minutes up-front only to end up paying more because you spend more time on the phone than you were allotted as part of your billing plan.

Here are the questions you need to ask yourself before you committing to a new cell phone number or a year-long contract.

Do I have cell phone service now? Is it OK?

If you do, you may want to keep your current wireless service provider just so you don't have to change your cell phone number. Telephone numbers are not transferable between service providers. I've given my cell phone number to a lot of people -- trying to inform them all of new number would be a pretty significant hassle. This is another reason to be careful when choosing a cell phone plan. Backing out of that number later could be a real pain in the neck.

What's the phone for?

If your phone is for real emergencies only (calling from the Blockbuster because they're all out of Chicken Run does not qualify as an emergency), the lowest-cost service should be just fine for you. Consider signing up for a simple "prepaid" plan where you purchase a set number of minutes that expire after a few months.  With a prepaid plan there is no monthly service charge but "roaming" surcharges, which kick in if you use the phone outside a set region, are expensive.

If you're lucky enough to be getting this phone as part of your job perks, check with your human resources department for details on the plan. Large companies often require you to sign up with a specific company - generally with a discounted rate. And there may be some extra features you will want if this is a work phone. Also, find out whether you can take the phone and phone number with you if you leave your job.

  graphic MORE ON "HOW TO SHOP FOR CELL PHONES"  
   
  • Part 2: Matters of Time and Place
  • Part 3: Things to watch out for
  •    
    Do you want to use the phone as a replacement for a regular landline phone, using it as your regular home phone and as your "phone away from home" as well? Or just as a vital adjunct to your regular phone service?

    If you're going to be on your cell phone a lot, you're going to want to want a lot of so-called "free" minutes. Cell phone companies define the word "free" a little differently than most people. "Free" minutes on a cell phone are the ones you pay for up-front as part of your basic monthly charges. For a bigger up-front monthly fee, you get more "free" minutes. Of course, you don't get a refund for the minutes you don't use. So, "free" minutes aren't really free, but they are much, much cheaper than the regular cell phone minutes you pay for after you've used them. If you use up your "free" minutes you can start paying as much as 60 cents a minute thereafter. graphic





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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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