Avoid the traps of cell-phone plans

by Ward Lowe  As someone who deals with contracts for a living, you probably negotiated a fair deal for your cell-phone service. But with new service providers continually entering the market and the myriad plan options available, you should take a close look before you renew, sign a new contract, or make changes to your existing plan. Here are some areas to check before you sign on the dotted line.

Take a peak at your calling hours

Peak calling hours used to begin around 8 a.m. and end around 7 p.m. However, in recent years, many providers extended their peak hours to 8 or 9 p.m., which means more of your calls eat up precious peak minutes. Don’t assume your new contract has the same hours as your previous one—even when you’re renewing the same plan.

If your provider has made changes to its hours since your last contract, ask to be grandfathered in because you’re a loyal customer or request other concessions, such as more peak minutes, to offset the change in times.

Examine fee structures

Cell-phone companies change their fee structures almost as frequently as their ad campaigns, so read the fine print on any contract. Calls that never counted against your minutes under the old contract, like voice mail or customer-service calls, may suddenly be classified as "extras" and billed accordingly. Also, look for any changes in the way your used minutes are calculated, such as rounding (e.g., counting a one-minute, 10-second call as two minutes).

Try to negotiate a trial

If you’re switching providers or changing plans within the same company, ask for a month to try out your new plan. The salesman probably spent 20 minutes telling you how fabulous his plan is, so ask him to back up his words with a written agreement that says you can cancel the contract without penalty within 30 days.

Some service providers may not agree to a trial period. If you still want to sign up for their calling plan, at least know exactly how much it would cost to terminate the contract; make sure there aren’t any hidden charges in addition to a cancellation fee.

Do you own your phone?

Some service providers include a phone as part of their calling plan and require you to return it if you switch to another company. You could save money on the front end by signing up with them, but end up spending more for a new phone if you want to switch providers in a year or two.

A new plan may reset your contract to day one

When your calling habits change, you might benefit by switching to a new plan offered by your existing carrier. Or you might hear about a better plan that wasn’t available when you first signed on. If you’re thinking about swapping plans mid-contract, though, find out if making the switch triggers an automatic extension of the contract and factor that commitment into your decision.

Loyalty counts

Despite carefully reviewing your options before agreeing to a calling plan, you may still get stuck with an unfavorable contract. Rather than accepting your fate, request a switch to one of your company’s alternate plans. If you get turned down, offer to extend your contract with them in exchange for the switch.

Companies want customers more than cancellation fees, so as long as you’re not threatening to jump to another provider, most wireless companies will give you some flexibility.

Illustration © Digital Vision.

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