Cellular phone service wars are raging everywhere these days, but before you decide to change yours, consider this story:
Bruce Hirsh is a Hinsdale businessman who decided to change his service after learning of a promotion offering a $125 credit to be used over a six-month period for every phone line that was switched. Hirsh says he contacted a retailer who confirmed the terms of the program. Hirsh filled out the paperwork and signed a contract.
And then something went wrong.
“The request for the $125 credit per line was rejected,” Hirsh said. “I still was being billed for the three new lines, but wasn’t being given the credits. I was told I was denied because the deal was for new digital phone service, which I hadn’t asked for.”
Hirsh says the contract doesn’t say anything about the digital service; when he complained to the retailer, the latter called the service company pretending to be a customer asking about the program and wasn’t told anything about digital service being a condition of the promotion, either.
“I’ve gotten as far as the regional manager with this thing, and they’ve started a file on me and my calls,” Hirsh said. “The last word I got from them was their telling me `It was too bad and they’d see me in court.’ “
Paul Adams, a spokesman for MCI Telecommunications, says stories like Hirsh’s are unfortunate experiences that can only be prevented by tenacious investigation of the service companies you’re considering and by “reading the fine print.”
“There are lots of new companies out there who buy phone service wholesale and sell it at the retail level,” Adams says. “With the telecommunications industry, you have to look at who the underlying service provider is, and be comfortable with that. A positive referral from a friend is a powerful endorsement.
“It’s the old story that if it sounds too good to be true, it probably is. Don’t feel pressured into making a choice. We’re in a never-ending cycle that’s likely to get worse, but a company offering the services you need makes it all worth it.”
Tom Rodriguez, who manages Areawide Cellular on Western Avenue in Chicago, says contracts offer the best option for savings for private customers. “The pay-as-you-go with no contract is by far the most expensive system,” he says. “Prices on analog phones, in particular, are huge.”
Bob Segall, public relations manager for Ameritech Cellular, says it’s important that customers choose a carrier based on the best service from their retailer.
“The whole technology with wireless carriers is getting blurred today, and you want someone you can feel comfortable with and knows cell phones,” Segall said. “And before you buy a system, be aware of what you’re buying it for.”
Segall says research conducted by the Cellular Telecommunications Industry Association found that two-thirds of those buying cellular service did so for safety reasons.
“I’m talking about the person who carries a phone so the kids can call a parent in the car, or wants to be prepared in case of an accident or the car breaking down,” Segall said.
Ameritech offers a 15-minute call service per month with a free phone for $14.95 for such customers. Other services have similar programs.
Carl Bowar, vice president of marketing for Sound Experience, says safety-only users should consider using a pager and then the phone in emergencies because they’ll be able to buy a smaller, cheaper phone package.
Bowar says a common mistake new subscribers make when signing up for a monthly service is not ordering enough minutes.
“Actually, for the first-time customer we feel it’s fine to say to them, `Look, use the phone a few months and see how much you like it.’ It’s such a convenience, most people wind up using it more than they thought.”
Bowar also suggests considering digital phone service, which he says can cost a third to a half less than analog.
“The only drawbacks currently are the initial cost of the phone, which you’ll often pay $50 to $100 for,” he says. “Most analog phones are free. The other issue is the calling range not being as large.”
Bowar adds that “your digital phone uses probably a third less power than an analog. I’d estimate you’d get three times the talk time than you will with an analog phone.”
Currently, some digital options are available from Cellular One (Digital Advantage), Ameritech (Clear Path), PrimeCo (digital service only) and Nextel.
To ensure a better experience for long-term phone service, industry experts suggest you look over a contract closely before signing it–and make sure you use a contract system.
“The pay-as-you-go option is for people who are credit challenged,” said Bowar, who adds that two-year contracts often offer more perks than one-year deals, and three years may sometimes be even better.
“Frequently, there’s an equipment rebate after three years, plus other things like the activation fee being waived,” he said. “There are other deals like providing the phone free of charge. But I’d caution people not to focus on just saving about $100 in phone and activation costs. The real issue is the service costs per month, and what you’ll be paying over the life of the contract.”
Canceling your service contract can be expensive, so check the terms of your contract carefully. Bowar says don’t be surprised if the penalty is in the $250 to $300 range.
Rodriguez says there are a few options if you cancel your service. “If you move from one state to another and the service you’re using isn’t available there, you often are let go of your responsibilities. The other option is seeing if there is a friend in your area who could finish the contract for you.”
Spend whatever time is necessary to read and understand your contract. Bowar says it often takes 30 to 40 minutes to explain programs to customers, and they are sometimes encouraged to take a copy home to read before signing it.
And with the number of service companies and plans increasing all the time, don’t be afraid to bargain. And remember that every plan or option isn’t always listed in a company’s advertisement, but don’t expect to be told all your options unless you initiate the inquiries.
Somewhere, there’s a friend or colleague who got a better-than-advertised deal. So can you.
