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The Honolulu Advertiser
Posted on: Wednesday, September 29, 2004

Seven-step guide to buying a cell phone without losing your mind

By Rhonda Abrams

Imagine you need a lamp. You go to the store, choose a lamp you like and can afford. You don't need to figure out which electric company to use or understand different electric technologies. And nobody would make you sign a contract or guess how many minutes a month you'd use your lamp.

But that's exactly what happens when you buy a cellular phone. I just bought a new cell phone and switched providers, and I'm determined to save you some of the frustration I felt. Can you tell me the difference between CDMA, TDMA or GSM — and why I should care? How about dual-mode, tri-mode or quad-something?

So here's a seven-step guide to the cell phone-buying process:

1. Decide whether to stick with your current service provider. You can now take your phone number with you if you switch, so you're no longer held captive.

2. Choose a provider. The most important consideration is the quality of reception where you live and travel. Don't depend on national ratings, because reception varies significantly from one location to another. Ask people what they think about their phone service locally.

3. Determine the technology you need. I'll make it easy: the only thing to consider is where you'll use your phone.

• If you live in a major city, you'll only need digital service — don't worry about the particular type (e.g. CDMA, TDMA, iDEN).

• In a smaller city or rural area, you'll probably want a phone that gets the older analog service, too, so look for "dual-mode."

• National: If you travel only to big cities, go digital. If, like me, you regularly visit smaller cities and rural areas, get dual-mode service. Because some providers are phasing out their analog service, ask for a dual mode phone and rate plan.

• International: If you travel to Europe, you'll want GSM service and a GSM phone. GSM is not offered by all providers and coverage within the United States is still being rolled out.

4. Find a phone: Go to the wireless store and look at the phones that operate on the technology you need (see step 2). The two most important considerations are the interface (screen and keys) and price. Those are very personal considerations, so pick up the phones and see how you like each one. Check for features you want and will actually use.

5. Get the brochures and read the fine print. For example, "No long distance charges" may mean no charges for incoming long distance calls or only in your home area. Free mobile-to-mobile calls may refer only to calls from someone on your network or in your town.

6. Call the service provider. You'll get more accurate information, more plans and better rebates by calling the company directly. Ask about plans that aren't in the brochures. Get the name of the person you're speaking to and write everything down.

7. Choose your plan. Determine the number of minutes you're likely to use per month. It's generally cheaper to buy a little on the high side rather than spend the exorbitant charges for extra minutes. Hint: You can always call and renegotiate your plan. Ask for an instant credit on your account instead of (or in addition to) a rebate on a phone purchase.

For more information, visit www.letstalk.com.

Rhonda Abrams is president of The Planning Shop, publisher of books and other tools for business planning.