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With national rate plans now the norm, additional long distance and roaming charges don't have the direct impact on wireless bills that they once did. However, these features do come into play when considering the right rate plan, and can be influential in unexpected ways.
Cell Phone Long distance
Many cell phone plans sold today include free long distance (from the plan's calling area). Plans that don't have free long distance charge about 20 cents a minute for this feature; these plans should be avoided by those who make long distance calls with their cell phone.
Two-year contracts have replaced those of shorter length. For most people, the choice is a two-year deal or a pay-as-you-go program with no contract.
As previously mentioned, since carriers tend to subsidize the phones that are sold to new postpaid customers, they generally require a contract to help ensure that they will recoup their investment in that customer.
Your cell phone isn't just for talking anymore. If you utilize data services, be sure to search for bundled or flat rate pricing to avoid any billing surprises or data overages.
While several competing digital technologies are in use in the United States, much of the rest of the world uses GSM exclusively. Further complicating matters is the fact that the frequency band used by the GSM carriers in the U.S. (e.g., AT&T and T-Mobile) is not the same as that used in other countries.
The original cellular technology, dating back to the 1980s, was based on an analog signal. Basically, it was a radio signal, but unlike your local FM station, cellular radio signals traveled only a short distance. This enabled the carriers to let lots of people all use the same frequency across a particular geographic area. During the 1990s, new wireless licenses were auctioned off, and the newly licensed carriers built out their systems using digital technology.
Most carriers charge an activation fee for setting up new service. These fees vary, but most are currently around $35. Family plans incur an activation fee for each line, although it may be lower for each line after the first one. Activation fees are pretty much pure profit for the carrier. However, they are an accepted part of the industry pricing structure. Just be aware that they exist, and that they will have to be paid either at sign-up or with your first bill.
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