Smart Shopping: Cell Phones

If you thought choosing your last cell phone was hard, just wait until next time. Not only are the plans confusing, but phones are more complex. Digital cameras, MP3 players and GPS receivers are now common and each new feature seems to bring new costs. This guide can help.

GETTING STARTED

Service providers determine which phone models work on their networks. So when you're replacing your phone, use this cell phone guide to help you decide whether you'll stay with your carrier or switch to a new one. Major carriers use one of two digital networks: CDMA (Alltel, Sprint, and Verizon) or GSM (AT&T and T-Mobile). The network plays a big part in the capabilities your phone will have and, to some extent, its performance. In fact, you'll even see big differences among same-name phones across different carriers.

When you're ready to buy a phone, you'll first have to decide which of the two types, regular or smart, meets your needs and budget. Choose a regular model if you need only voice and text-messaging capability, and perhaps a music player and camera. Smart phones, with their advanced operating systems, QWERTY keyboards, and other PDA-like features, are a better choice for people who need frequent access to e-mails, an organizer for appointments and contacts, and Internet-based services.

Important features such as support for wireless Bluetooth headsets, GPS navigation, and high-speed data access can greatly enhance user satisfaction.

TYPES

Regular cell phones
Most models are compact and priced from $20 to $150, or come free with a two-year contract. The keypad and overall operation is generally straightforward. All allow you to store frequently used numbers and to send and receive text messages. Many have basic cameras and support for wireless Bluetooth headsets for hands-free communication. You'll need to spend more than $100 to access high-speed data networks (3G) and enjoy music and video-based services. Other capabilities might include a touch screen, a QWERTY keyboard, an HTML browser, a multimegapixel camera, memory-card storage for music and pictures, and more option for custom ring tones, games, and other services.

Smart phones
The world of smart phones divides into two categories. Some offer business-focused capabilities in a palm-fitting package. They allow you to create and edit spreadsheets and documents, and they usually come with Microsoft Outlook, Palm Desktop, or other personal information management software for your PC. Many of those models have touch screens for accessing the phone's many features. Other smart phones are geared toward personal use. They're fine for playing music and other multimedia, reading e-mail messages, and opening Office-type attachments, but they don't allow you to create or edit documents and spreadsheets.

FEATURES

Look for usefull features

Today's cell phones come equipped with many useful calling and multimedia features, including a media player, camera, Web browsing, child-location, and call-management services. Some features, such as programmable shortcuts, Bluetooth, speakerphone, and voice command help to make the phones easier to use.

Programmable jog dial
This cell phone feature lets you program all the pressure points on a circular jog as shortcuts to the most-used features and functions, such as address book and text messaging.

Bluetooth
This technology enables the phone to work with wireless headsets and most hands-free car systems for tangle-free calls. (But avoid using any phone, even hands free, while driving.) Some phones support stereo Bluetooth headsets for music and other multimedia. And some can wirelessly exchange pictures, contacts, and other files with other compatible Bluetooth devices, such as a computer, cell phone, or PDA.

Camera
Most new phones have cameras with resolutions of 1-megapixel and up that are capable of producing respectable snapshots, though many lack a flash, which is helpful when taking pictures in dark environments. Look for models with 3-megapixel cameras or higher if you intend to print some of what you shoot. Those models take photography more seriously by pairing sharper image sensors with high-grade lenses, auto focus, zoom, and brightness controls for greater photo control.

Document editing
All smart phones allow you to review documents. Some models add the convenience of creating, deleting, and editing them.

GPS navigation
All phones have some type of location-based technology to help emergency responders find you when you dial 911 or 112. But an increasing number of phones support GPS Navigation services. They integrate GPS with maps and search engines to give you real-time, spoken, turn-by-turn directions to an entered address, or to help you find nearby businesses by name or category, such as Joe's Pizzeria or hospitals. Some phones lack automatic rerouting, spoken turn-by-turn directions, and other advanced capabilities, which limits their usefulness while you drive.

Hearing-aid compatibility
Some phones interfere with hearing aids. Even those with hearing-aid compatible designations are not guaranteed to work with all hearing aids. Your doctor can help you choose a phone compatible with the aid you use. Or go to www.accesswireless.org..

Mac compatibility
Many phones let you synchronize appointments, contacts, and documents with a computer, but only some can do that with Macintosh computers.

Media player
Most phones have very competent media players, allowing you to view videos and sort music tracks according to genre, album or artist, playlists, etc. They also typically have more than one playback option, such as repeat and shuffle. Some phones, such as the iPhone, have media capabilities better than other standalone players. The small number of phones that lack those convenient features are rather cumbersome to use.

Memory card
Many phones have slots that accept memory cards to expand storage capacity by as much as 32GB. The removable cards can also serve as an easy way to shuttle files between your phone and other devices--provided that the phone's maker didn't bury the card slot behind the battery cover. Card formats include Secure Digital Card SD, miniSD, and MicroSD.

Bluetooth data
Most Bluetooth-equipped cell phones can link only with wireless headsets and hands-free systems in cars. But those with Bluetooth-data support can wirelessly exchange pictures, contacts, and other files with other compatible Bluetooth devices, such as a computer, cell phone, or PDA.

Preset and custom text messages
Besides providing a quiet means of communication, text messages have been known to get through even when networks are overloaded. Most phones come with preset messages, such as "running late" or "call home." And most allow you to program customized messages for an emergency or frequent use, for example: "I''ve dropped Billy at soccer."

Programmable shortcuts
These let you assign functions to the phone's controls (touch screen, jog dial, etc.) so that you can quickly access contacts, text messaging, and other frequently used features.

QWERTY keyboard
Keyboards make composing and editing text and e-mail messages much easier than a keypad does. Some phones have keyboards that try to save space by having some letters, numbers, and symbols share a key. Those "condensed" keyboards, though still more convenient than a keypad, are not quite as easy to handle as full QWERTY keyboards.

Operating system
Smart phones run on various operating systems, each with its own character. The operating system affects a phone's capabilities, ease of use, and other conveniences.

Speakerphone
A built-in speakerphone, which allows hands-free use in a car or elsewhere. (But avoid using any phone, even hands free, while driving.)

Standard headset connector
The standard connector on the handset, also known as a 2.5-mm or 3.5-mm connector, is compatible with most aftermarket wired headsets. Some phones with a proprietary connector might include an adapter to a standard connector.

Touch screen
Many smart phones have a touch-sensitive display that responds to light contact with a stylus, finger, or both. It provides an alternate, and sometimes more direct, method of entering data and activating phone features and controls.

Voice command
This feature allows you to dial numbers from your phone book by speaking the name, without the usual training. You can also dial numbers by pronouncing the digits.

Wi-Fi
Cell phone data networks--even those designated "3G broadband"--are much slower than the broadband Internet connections many people have at home. But a rising number of phones have a built-in Wi-Fi radio that gives them faster Internet and e-mail access through home networks and Wi-Fi hotspots. On some phones, the Wi-Fi is just for Web browsing; on others, you can use the connection to swap files with a PC or make calls using Voice Over Internet Protocol.

BRANDS

Apple
Though a newcomer to wireless handsets, Apple jolted the telecom world in 2007 with its revolutionary iPhone, an AT&T exclusive, which provides superb ease of use via a large, highly interactive multitouch screen, and a customizable icon-driven interface. It also has robust multimedia capabilities, including one of the best music players we've seen in a phone. Its e-mail application is among the easiest to set up. The second-generation iPhone uses a faster data network, adds GPS functions, and debuted in June 2008 at $199, less than half the price of the original iPhone at its introduction.

HTC
Taiwan-based HTC, which started out manufacturing Pocket PC PDAs, has moved aggressively into the smart-phone arena with its Touch series, Shadow, Tilt, Wing, and Dash. Those phones are known for their relatively large displays and QWERTY keyboards. They run on the Windows Mobile operating system, which is similar to Windows and makes navigation intuitive to PC users. The company might not be as well-known as other cell phone brands because many of its products, such as the Wing and Shadow, are branded under the T-Mobile name.

LG
Considered a leader among cell phone brands, LG has introduced such popular handset lines such as the Chocolate, and EnV, and other models geared toward music aficionados and heavy texters. Its lineup ranges from basic models to those with full QWERTY keyboards and large touch-sensitive screens that adroitly integrate solid phone features and robust multimedia, including live TV service and messaging applications. LG's Prada, which debuted in Europe in 2006, holds the title of the phone with the world's first complete touch-screen interface. The company was also among the first to add QWERTY keyboards to conventional cell phones. Its brand is well-represented among major carriers.

Motorola
Motorola is an industry trendsetter, introducing the now iconic clamshell phone design back in 1996, when it introduced the StarTac line. Other well-known lines include the music-centric ROKR, and fashionable RIZR and RAZR designs. Motorola's Q smart phones run on the Windows Mobile operating system, which is similar to Windows and makes navigation intuitive to PC users. The Motorola brand is well-represented among major carriers. Motorola has a large selection of phones that run on Sprint Nextel's push-to-talk service, which is very popular with business users.

Nokia
Though Nokia is the world's leading handset maker, its phones are not as widely available through U.S. carriers, from whom most U.S. consumers buy their phones. Nevertheless, Nokia offers a solid lineup of phones for AT&T and T-Mobile users. And the company's N and E series smart phones feature relatively high-megapixel cameras.

Palm
This smart-phone manufacturer has primarily served business users with its Treo line, but is reaching out to consumers with products like the compact Centro line. All Palms have user-friendly touch-screen interfaces that feature programmable shortcuts and hard buttons for messaging, phone, and other applications. They also support full-featured e-mail and office programs. The Palm operating system is among the best for basic PDA functions -- contacts, calendar, and task lists.

Pantech
This relative newcomer to the U.S is Korea's leading handset manufacturer, known for its tiny clamshell handsets that made their debut in the U.S. years ago. Pantech has since introduced a handful of other models, including the Duo, a compact smart phone with an innovative dual-slider design and keyboard with full PDA capabilities, and the Breeze, with large-numbered buttons, geared toward people who need a phone that is simple to use.

Research in Motion (RIM)
The company's trademark BlackBerry smart phones are well-entrenched in the business world. They boast one of the best operating systems for e-mail, which is also among the easiest to set up -- especially on T-Mobile. Push capability automatically sends e-mails to the phone so that you don't have to check it manually. Most models have easy trackball navigation, but lack touch-screen support. And, on many models, you can't create and edit Office documents such as Word and Excel. More recently, they've targeted consumers with the slimmed down, user-friendly Curve and Pearl.

Samsung
This cell phone brand is well known for its innovative designs. Samsung has one the largest lineups of phones catering to music aficionados and heavy texters. Its phones are widely available from most major carriers. The company was among the first to add QWERTY keyboards to conventional cell phones, and even developed a phone for people who need large buttons that are easy to see and master. Some Samsung phones use touch screens to adroitly integrate solid phone features with robust multimedia, including live TV service and messaging applications. Samsung Mobile's Blackjack smart phones, popular with business users, run on the Windows Mobile operating system, which is similar to Windows and makes navigation intuitive to PC users.

Sanyo
This phone maker has a relatively small product line, including the fashion-focused Katana, which it markets exclusively though one carrier: Sprint Nextel. Offerings mostly fall under entry-level and mid-level market.

Sony Ericsson
This joint venture between the Japanese Sony Corporation and Sweden's Ericsson offers a wide range of handsets, from low-end budget models to multimedia powerhouses. Its product line includes the music-centric Walkmans and the camera-focused Cyber-Shots.

Cell Phone Service

Alltel
One of the better providers in the three metro areas for which we had adequate survey data.

A standout for connectivity. Among the better carriers in customer service and the least likely in our survey to extend contracts when changing plans. Automatic credit for dropped calls. Less widely available than other top carriers. Uses code division multiple access (CDMA) technology. Offers high-speed wireless data network for faster Web browsing and downloading. Alltel and Verizon announced plans to merge, pending approval from federal regulators.

Unique offering: My Circle plan, which allows unlimited free calls to 10 designated phone numbers, wireless or landline on any network.

AT&T
Home of the iPhone but trails the better carriers in almost all respects.

The exclusive carrier for the iPhone. Has Smart Limits plan for controlling kids' access (see 5 Ways to cut your bill). But service and satisfaction were clearly second-tier, and connectivity was below average, thanks to static and service failures in many of the metro areas we surveyed. Uses Global System for Mobile (GSM) technology, so most of its phones can also be used outside the U.S. The carrier offers high-speed wireless data network for faster Web browsing and downloading.

Unique offering: Rollover minutes, which allow you to carry over unused minutes for almost a year. AT&T Mobile TV, a live-TV service with cable and broadcast channels.

Sprint
Bottom-ranked of carriers we rate.

Consistently among the lowest-rated for satisfaction, dropped calls, and customer service. Uses CDMA technology. Users buy more high-speed data services from Sprint than from any other carrier. Sprint merged with Nextel in 2005 and maintains the Nextel network separately to offer walkie-talkie ("push to talk") capability between compatible Sprint Nextel phones. Our results exclude customers who receive Nextel service from Sprint because their phones operate on the different iDEN technology.

Unique offering: Unlimited calling starts at 7 p.m., earlier than other carriers.

T-Mobile
Another solid performer that often offers more for your money.

On par with Verizon in most of the metro areas we surveyed. Least expensive for Web access ($6 a month for unlimited access) and for multimedia messages (messages with photos or other media attachments cost the same as text messages, which are inexpensive with T-Mobile's bundles). The myFaves plans allow unlimited free calls to five people on any network. Uses GSM technology, so most of its phones can also be used outside the U.S. Rolling out high-speed wireless data network.

Unique offering: HotSpot@Home, which allows phones to switch to Internet calling.

Verizon
Among the better carriers this year and in our earlier surveys.

A standout for connectivity. Among the better national carriers in customer service and the first to prorate termination fees (with a $5 reduction per month). Uses CDMA technology. Offers high-speed wireless data network for faster Web browsing and downloading. Alltel and Verizon announced plans to merge, pending approval from federal regulators.

Unique offering: VCast Mobile TV, a live-TV service with cable and broadcast channels.

Shopping Tips

The phones

You can find cell phones in many outlets, including carrier stores, independent wireless retailers, electronics stores, and Web sites. But the cell phone is only part of what you need. You also have to sign up for service with a wireless provider and choose a calling plan. Major smart-phone makers include Apple, BlackBerry, LG Electronics, Motorola, Nokia, Palm, and Samsung. Most are sold by the major carriers: Alltel, AT&T, Sprint Nextel, T-Mobile, and Verizon Wireless. Some carriers sell their own brand of smart phones manufactured by Casio, HTC, and other phone makers. Phone prices with a two-year contract, including rebates, range from about $100 to $300. Phones purchased without a contract cost significantly more, starting at $400.

The providers

The major national companies are Alltel, AT&T, Sprint Nextel, T-Mobile, and Verizon Wireless. There are also many local or regional providers. The leading cell-phone manufacturers include LG Electronics, Motorola, Nokia, Samsung, and Sanyo. Prices range from free with a two-year contract (including rebates) to $200 or more for an unlocked cell phone without carrier commitment.

Cell phones only

Consider shape and size


Phones that fold, slide, or swivel are typically more compact when closed. Phones shaped like candy bars can be used without first being opened. The best choice depends largely on personal preference, so visit a store and hold the phone if possible. Make sure you can comfortably use most keys with one hand. Make a test call and access menu items. We've found that flat or virtual keypads make dialing more difficult without looking. Other call clunkers include keys that are small, oddly shaped, or arranged in unusual patterns, especially if you're trying to dial a number in dim light.

Check the display
Most color screens are fine in dim and normal light, but some are harder to see in daylight or under bright light. Try the phone outside or under bright light. In our tests, phones that displayed incoming and outgoing numbers in large black type against a white background were the easiest to read under most conditions. Also make sure indicators such as battery life and signal strength are clearly visible.

Smart-phone buyers: Size up the keyboard and display
A smart phone's shape and size are largely determined by its keyboard and display. Some models have a QWERTY keyboard that slides out from behind the phone and tucks away when not in use. Others open like an eyeglass case to reveal a keyboard, or leave the keyboard in plain sight. Still other models have a virtual keyboard on their touch-sensitive displays. Overall, we found pecking out messages on their mirror-smooth, buttonless surfaces to be a challenge.

If you plan to do a lot of typing, look instead for a keyboard with keys that are raised, clearly labeled, well spaced, and well sized. Make sure that the keys provide solid tactile feedback. The display and keyboard should be easy to read under different lighting conditions. Overall, we've found that a full QWERTY keyboard, similar to a computer keyboard, is best for composing and editing text and e-mail messages. Some keyboards cram multiple letters, numbers, and symbols on a single key to save space. But those "condensed" keyboards, though still more convenient than keypads, are not as easy to handle as full keyboards.

Smart-phone buyers: Consider the data plan
Using the extra, network-dependent capabilities of a smart phone requires a regular (voice/text) phone plan and a data plan for Web surfing and sending and receiving e-mail. Depending on the carrier, prices for the two combined start at $45 to $80 a month with a two-year contract. But you can easily spend more than $200 a month as you add minutes, text messages, and other services.

Check for special prices and promotions
Rebates and special offers can be substantial, but they change frequently. To get the best deal, check the carrier's offerings online and in its retail stores, and then see what independent dealers offer at their Web sites and in their outlets. If at all possible, buy a new phone when you're switching carriers or signing a new service commitment with your existing carrier. You almost always get a better deal -- either a deeply discounted price or even a free phone -- when you're signing a contract.

Consider buying online
In our last cell-phone buying survey, online retailers satisfied customers more than walk-in stores. Buyer satisfaction was higher among those who bought from service provider or independent Web sites. While they might be conveniently situated, major chains such as Best Buy and Circuit City, service-provider retail stores, and mom-and-pop wireless stores, were a less-satisfactory option for our respondents.

Check the return policy
Make sure you can return the phone if you're not happy with it. Some stores attach stiff service-cancellation fees on top of what a carrier might charge.

Don't buy phone insurance
All major cell carriers offer insurance policies that cover lost, stolen, or damaged phones. Those policies typically cost about $4 to $5 a month and carry a $35 to $100 deductible. We don't think insurance is worthwhile for most consumers. The cost of the premium over a year, for example, would be $50 or $60. Tack on the deductible, and you've paid as much as you would have to buy a new phone. In addition, some insurance plans require you to fill out a police report, and damaged phones are often replaced with a refurbished phone that might not even be the same model.



Copyright © 2006-2009 Consumers Union of U.S., Inc.

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