Buying a Cellular Phone

Much depends on whether you’re still under a contract, as well as whether you’re replacing your phone, carrier, or both. Here’s advice for each situation:

WHEN YOUR CONTRACT IS UP

    This is the best time to upgrade your phone and, if need be, dump your carrier. Now that you’re a free agent, your current carrier might do almost anything to get you to re-enlist. But don’t commit too quickly. You can usually stay with your carrier on a month-to-month basis, without a contract, until you find what you want.

   If you just want a new phone. Check the Ratings (available to subscribers) to see which phones will work with your carrier.

    Unless you’re already familiar with the model you’re considering, there’s no substitute for visiting a walk-in store and assessing the feel of it in your hand. But judging by our readers’ experiences, you might be happier if you head home and go online to complete the transaction.

    For example, 65 percent of readers who bought a cell phone from a service provider’s Web site were completely or very satisfied by the experience, compared with 55 percent who bought at the provider’s walk-in store.

   The gap was even more striking when it came to price, with 61 percent saying they were completely or very satisfied with the price they paid for a phone at a provider’s Web site vs. 46 percent for the provider’s store.

    Wherever you shop, don’t be unduly swayed if someone offers you a discount. Discounts have become as ubiquitous as the phones themselves; 89 percent of readers reported getting one.

   If you want to try a new provider. In a separate survey, nearly a quarter of our readers said they switched carriers during the last three years, largely because of poor service. If that rings a bell, start your hunt for a new and improved carrier (see Cell phone service).

    Note that even if you’re content with your current phone, there’s a good chance you won’t be able to use it with a new carrier. That’s not only because providers sometimes use incompatible networks, but also because they usually “lock” their phones electronically to discourage customers from going elsewhere.

    If you have a phone that works on the GSM network, used by T-Mobile and AT&T (formerly Cingular), ask the new provider whether you can keep using it. Even if you can, though, you might have to pay to have it unlocked. If your existing phone works on the CDMA network, it probably can’t be transferred, so your best option might be to donate or recycle it.

    Once you’ve picked a provider you think you’ll be happier with, visit its Web site and dive into the details. In our spot checks of stores, we’ve found that salespeople vary widely in their understanding of the plans they offer as well as in their patience for explaining them.


WHEN YOU’RE UNDER CONTRACT

    Switching companies in mid-contract can cost you more than $200 in early termination fees per phone number. Still, about 28 percent of our readers who changed providers during the last three years were under contract.

    If your existing service is at least tolerable, try riding out the contract. These ideas might help too:

    Changing your plan. If cost is the issue, you usually can move to one of your current carrier’s other plans without penalty. But be aware that switching can mean having to extend your contract, pay new activation fees, or surrender any rollover minutes you’ve accumulated.

    Nearly half of our readers who switched plans did so because they needed more minutes, a move that can save you nasty charges for exceeding your monthly allotment. On the other hand, if you find you don’t use your phone much, consider switching to a more basic monthly plan with fewer minutes.

    Replacing your phone. It’s generally not a good idea to replace a phone while you’re still under contract unless you absolutely need to, since the carrier or other authorized retailer won’t be as generous with discounts. If you’ve broken or lost your phone and don’t want to pay dearly for another one, note that you can often find a less expensive replacement on eBay or other Web sites.