Deciphering cell deals? Just put them on hold

Companies are flooding consumers with offers ahead of Monday's rule changes. But the offers might get even better.

By LOUIS HAU, Times Staff Writer
Published November 21, 2003

The latest offers certainly sound tempting:

Unlimited calls on Fridays. Unlimited nighttime calling starting at 7 p.m. instead of 9. A signup bonus of 500 minutes.

But the conditions attached to these deals for cell phone service may not make them as attractive as they appear. And some experts say the offers could get even better for those who wait.

The providers of cell phone service are flooding consumers with the offers in hopes of snagging customers who will switch carriers now that they can keep their old number if they remain in the same area. On Monday, "local number portability" kicks in for most areas. (It's not required in Citrus County and other rural markets until late May, though some carriers may offer it earlier.) At the same time, fixed-line phone customers will be able to switch their phone numbers to a wireless phone.

While all those offers from wireless carriers may sound appealing, they could cause grief for consumers who don't read the fine print. For instance, T-Mobile is offering a new $39.99 calling plan that extends unlimited weekend calling to include Fridays. But that plan doesn't include unlimited nighttime calling.

Meanwhile, Cingular and Sprint are offering calling plans with unlimited nighttime calling that begins at 7 p.m. instead of the more standard 9 p.m. But you'll have to pay for the extra time: $7 a month for Cingular, $5 for Sprint.

Cingular is also offering a signup bonus of 500 rollover minutes for calling plans that cost $39.99 or more. But the offer is only available to new customers.

Even with these catches, special offers such as these may offer some consumers advantages over plans they currently have. However, of the nation's 152-million cell phone users, about 75 percent have a contract that subjects them to stiff penalty fees if they terminate early.

Experts counsel patience, advising those who have already decided to switch wireless services to wait for potential glitches that could arise during the early days of number switching.

With a lack of adequate guidance from the Federal Communications Commission and many companies' hesitation to prepare for switching numbers, some providers may not be ready for Monday, said Bob Egan, president of Mobile Competency, a North Providence, R.I., wireless market analysis and consulting firm.

Indeed, while the FCC says consumers should be able to move their existing wireless phone number to a different wireless service within 21/2 hours after requesting the switch, that's a guideline, not a requirement.

Andrew Cole, senior vice president in the wireless practice at Adventis Corp., a Boston consulting firm, cautions that "for the first month or two or three, just the practicalities of the system means it's not going to work very well."

In addition to possible problems with the number-switching process, market watchers point to another reason it may make sense to hold off on switching carriers: the offers could get better.

"The competitive forces are just going to get tighter and tighter," said Tim Morstad, a policy analyst for Consumers Union in Austin, Texas. "The letter I got two weeks ago from my wireless carrier isn't as good as what's on their Web site right now. So it's changing that quickly."

For the same reason, Morstad said, customers intent on switching now should limit themselves to one-year contracts, rather than two-year pacts with enticements that might prove to be less attractive in the near future.

Fixed-line customers thinking of dropping home phones in favor of a wireless phone with the same number should proceed carefully, advises Consumers Union.

Those who make many local calls may find their monthly basket of "anytime" wireless minutes quickly depleted, something that isn't a concern with an unlimited local calling plan on a fixed-line phone. The ability to call for help in an emergency is also compromised with a cell phone, which can't automatically inform emergency personnel of your exact location the way a 911 call on a fixed-line phone can.

Not all wireless carriers are making special pitches to attract new customers or retain current ones. Verizon Wireless isn't running any unusual promotions at the moment beyond what it normally does, spokesman Chuck Hamby said.

"We're not going to give away the farm," Hamby said. "We haven't had to so far and we're seeing record growth. Just because people can come to us or leave us, there's no reason for us to change the way we do business."

For more information

The following Web sites have more information about wireless number portability:

Federal Communications Commission: www.fcc.gov/cgb/

NumberPortability/

Consumers Union: www.escapecellhell.org

CellUpdate.com: www.cellupdate.com/

MyRatePlan.com: www.myrateplan.com/