Winter 2007 USAA.com Magazine

when young and old lined up at AT&T® and Apple stores over
the summer, it wasn’t the latest-greatest wireless plan they were after.
The iPhone mania is just one more example of consumers’ endless appetite
for high-tech wireless gadgets loaded with features. Before you
run out to buy the next hot item, your first priority should be choosing
the carrier and plan, says David Wood, a consumer telecommunications
expert with ConsumerAffairs.com. If you time it right, you may be able
to get that latest-greatest device on sale. Follow these tips to make sure
you get what you want at a price you can afford.
iPhone TM is a trademark of Apple, Inc.
O p p o s i t e : d r e a m s t i m e ; T h i s p a g e C l o c k w i s e f r o m t o p : i S t o c k , D r e a m s t i m e , i s t o c k
question your motives. Before choosing
or renewing a plan, answer these
questions:
• How often will you use the phone
• Where will you use it
• What percentage of your use will
be calls vs. texting
• Will the majority of your calls
be during the day, evening, or
weekend
• Will people be calling or texting
you often
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When you know the answers to
these questions, you’ll have a better
idea of what you really need.
Use it or lose it. If you won’t be using
the phone often, consider a prepaid
plan. You won’t be required to sign a
contract or pass a credit check. But
you should still read the small print.
Some plans charge $1 a day even if
you don’t use the phone.
read the fine print. Ignore the sales
pitch or online bargain, and read the
terms and conditions before you do
anything else. It seems obvious, but
if there are problems later, the only
thing that will matter is what’s in the
contract. Do your homework upfront
to avoid disappointment later.
try it out. A carrier’s coverage map
is only a basic guide and not a guarantee
of service in every area. In fact,
service is not guaranteed at all. Most
carriers offer a 14- to 30-day trial.
Test it everywhere you plan to use it.
If you return the phone during the
trial, you won’t pay a cancellation fee.
If you return the phone within three
days, the activation fee is usually
waived as well.
know thy minutes. You can
get in trouble fast by
underestimating
how many minutes
you’ll need. Each
minute over your plan
can cost as much as 45 cents, so it’s
better to overestimate. The same goes
with other services. If you use text
messaging, learn about the different
package deals and charges. Many
consumers are shocked when they
receive a bill for hundreds of dollars
due to text messages they send and
receive. If you text a lot, unlimited
texting may be the way to go. Your
phone might already be activated for
text messaging and Internet service.
If you don’t want these options, have
them deactivated.
make a deal. You can almost always
get a better deal on electronics such
as cell phones and mobile devices
through a dealer or online, as opposed
to buying directly from the carrier’s
Web site. A dealer, however, might
have different terms and conditions
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Hold the phone !
remember that any price quoted
won't include taxes, fees, and
other service charges, which can
bump up your monthly cost by
more than 15 percent.
for the plan than the carrier. Make
sure you read the details.
prepare for change. Know what
happens if you change your plan
in any way because it might extend
your contract. What happens if you
want to cancel your contract early
Some plans charge fees as high as
$200 per phone number to get out
of your contract. Some dealers
will add their own termination fee,
which can take your termination
fee as high as $600.
"Free" can cost you. Some carriers
offer a free phone when you sign up
for their plan. You might discover this
free phone is free only after a customer
loyalty rebate. So you might have to
wait as long as six months to submit
the rebate (if you remember), and then
it might take another three months
to receive the rebate. Some rebates
require that you’ve been a customer in
good standing for 12 months before
you can submit the rebate. Miss a payment,
and you’ll lose the rebate.
winter 2007
9
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