CONSUMER ALERT

MIKE COX
 ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading or deceptive business practices, and to provide information and guidance on other issues of concern.

Cellular Phones
Facts to Know Before Going Wireless

Want to have a cell phone? It pays to do your homework before signing up for a cellular service. Cell phones are everywhere today, in the car, in the mall, and on the beach. There are better phones, with more options, cheaper rates and broader coverage than ever before, leaving it up to you to make the right choice.

Become an informed consumer first!

You'll need to learn as much as you can about cell phones before activating your cell service.

Start with choosing the service plan, then select a phone model. The cute phone you've seen advertised on TV may not be available with the network used in your area or the service plan you choose.

Choose the service plan that fits how often and where you will use a cell phone. Service plans that are limited to your home usage area are the least expensive--as long as you stay in that area. Service providers have maps showing coverage areas to help you make an informed choice. However, make a call outside that area and you're charged expensive roaming fees. Roaming fees typically range from 60¢ to $1 a minute, plus you're charged long distance rates.

Read the fine print: activation fees, contract-termination penalties, monthly service charges for particular features and other supplemental charges are spelled out in the fine print of the contract. Be sure you know all the hidden charges and any penalties for early cancellation for any plan you choose.

Know the difference: analog, digital or PCS?
Analog is older technology--it works identical to ordinary radio. In more remote areas served exclusively by an analog network, subscribers may have no choice.

Digital cellular technology converts messages to digital information and typically offers better voice quality and more advanced features like voice mail and caller ID. Digital also protects from scanning devices and offers more security.

PCS (personal communication service) is digital technology that operates in a separate frequency band. PCS can also offer text messaging capability. The disadvantage is spotty coverage outside metropolitan markets.

Make sure the phone technology you choose has adequate coverage in the areas you plan to use your phone.

Local or extended coverage?
If you will make a lot of calls outside your home usage area, you should select a regional or nationwide calling plan that enables you to make calls without incurring roaming or long distance charges. Nationwide calling plans are a good value for heavy phone users who are frequent travelers. Carefully select between the various promotions for monthly usage minutes and other features that are important to you. Note: No network covers 100% of the nation, so ask before signing whether the areas where you travel will be covered.

How much will it cost?
You are charged for air time whether you place or receive a call. Many plans round up to the next minute. If you call is 61 seconds, you will be charged for 2 minutes. You might find a plan for 100 minutes for $30/month, but each additional minute may cost 45¢. If you talk longer than 100 minutes per month, it may be more economical to step up to the next plan for 200 minutes at $50/month.

Reduced rates for off-peak times
Many cellular providers offer reduced rates for off-peak usage. Read the fine print and ask questions first. "Unlimited Nights and Weekends" may be available only by paying a premium of $10 to get the service.

Mobile phone or portable?
A mobile phone is designed exclusively for use in a vehicle. It has a cord and antenna attached to the vehicle, and is powered by the vehicle's battery. Portable, or hand-held, phones are by far the most popular because they're smaller and can be used most anywhere.

Prepaid service plans?
Prepaid service plans are advantageous for cell users who have difficulty securing credit approval or for those who want to limit usage, such as for emergencies. Advantages also include inexpensive phones and no required credit checks, long distance charges, service fees or contracts. Disadvantages include high costs (65¢ to 75¢ a minute or more) plus an activation fee (up to $35) is usually required.

Before making a final decision:

• Shop around several dealers and service providers before deciding on the phone and plan that best suits your needs.

• Decide what kind of service you need, including when you will be using it and the places you will need to call.

• Read the written contract to be sure the service you want is the service you are buying, without extra added charges.

If you have a problem with a cell phone provider, file a complaint with the Consumer Protection Division:

Consumer Protection Division
P. O. Box 30213
Lansing, MI 48909

(517) 373-1140
FAX: (517) 241-3771