Wireless Plans Basics

Over the life of a cell phone, the service will cost much more than the phone itself- especially if the phone is free, after rebates and credits. Thus, the best way to control your mobile phone costs is to choose the most cost-effective calling plan from a carrier with good coverage in your area. Aggressive competition for subscribers among the service providers, also know as "carriers," has driven the monthly and per-minute costs of wireless calling down dramatically and made even some of the newest cell phones, packed with cutting-edge features, unprecedented bargains. And the new ability for subscribers to keep their phone numbers when they switch carriers has only heightened the competition. Because of this more and more people are cutting the cord altogether and making their cell phone their only phone.

1. Calling Plan Basics
2. Types of Calling Plans
   • Local
   • Regional
   • National
   • Family or Shared Plans
   • Pre Paid

Calling Plan Basics
If you choose the right calling plan, your cell phone shouldn't cost you much more than your home phone. But the myriad choices and complexity in rate plans can make comparing and choosing among them a challenge.

There are two key differences that make cell phone calling plans more complicated than your home phone. One is that cell phone users pay for both incoming as well as outgoing calls, making it somewhat harder to estimate and control your usage. The other is obvious: cell phones are mobile, allowing you to use them from a virtually infinite number of places, rather than the fixed location of your home or office phone.

Thus, in addition to the traditional variables in your phone bill -- how much time you talk, what time of day you talk and across how long a distance do you talk -- where you are when you talk on the phone can also affect your cell phone bill.

Types of Calling Plans
Though each carrier offers variations, most calling plans fall into one of these basic categories:

Local
These are the most geographically limited plans in which you pay extra for using your phone outside of a relatively small home calling area, typically a metropolitan area and the adjacent suburbs. Under many local plans you also pay extra for calling long distance. These plans carry the lowest basic monthly fees, but if you use your phone when you’re on the road or make a lot of long distance calls, your monthly bills can quickly climb well above the cost of comparable regional or national plans. These are the most cost-effective plans if you generally stick close to home and/or don’t plan to use your phone very much.

Regional
These plans usually offer inexpensive calling over a much larger multi-state area, such as the entire Northeast or Southwestern U.S. Only when you make or take calls outside this area will you pay high roaming charges on top of your monthly fee. If you take frequent road trips across state lines, a regional plan could be your best bet. Make sure to check the coverage maps for your carrier to make sure the places you frequent are within your home calling area.



National
These plans carry somewhat higher monthly fees, but they typically allow you to use your phone anywhere in the country with no extra charge for roaming and/or for long distance calls. These plans are best for people who travel or are simply willing to pay a bit more for freedom from worrying about where they are and who they’re calling.



Family or Shared Plans
These monthly plans give two or more family members their own phone and separate phone numbers, while sharing a "pooled" allotment of minutes. The plans offer a lower cost per minute than individual plans that add up to the same number of minutes. Even better, they cut costs by addressing a common multi-phone problem: some family members exceed their allotment of minutes, while others don’t use theirs. You get one monthly bill for the entire family. But you’ll want to check the call timer on each member’s phone periodically, since there's no other warning that you’re about to run over your family quota of minutes.



Pre Paid
A pay-as-you-go prepaid phone is an option for people who don't want the hassle of a credit check; those who expect to use their phone very sporadically or only for emergencies. Their per-minute rates can be more expensive and the minutes your purchase sometimes expire after 90 to 120 days. The phones are generally inexpensive, but increasingly stylish and capable models are being offered with standard features such as voicemail, call waiting, Internet access and other extras just like those sold with conventional monthly calling plans.