Choosing a Cellular Service Provider

If you're looking to purchase a new cell phone with a new provider, you're likely overwhelmed by the different carriers, their plans, and rate structures. With so many to choose from, it's a daunting task to determine which one is right for you. Because it's such a necessary process for most of us, this is my attempt to demystify the different service providers and give you an easy guide to choosing one.

When you decide it's time to start shopping, it's important to analyze your needs.

Are you planning on a monthly service or pre-paid?

Pre-paid plans usually have two uses: they are a great alternative for those who have credit issues which may limit them from acceptance with a cell service provider and they are great for those not planning to use the phone very often.

Will you need text messaging?

Too many of us have made the mistake of texting when we don't have the appropriate plan for it. Text messaging costs a certain amount of money per text, and can easily add up after several messages. If you're planning on texting, it's likely a good idea to include a certain amount in your plan.

Will you need email?

Email and internet services (along with text messaging) are usually sold separately and require specific types of phones. On certain devices, it is also much easier to read and type an email (such as a Blackberry or Iphone). There is also email setup required on any phone you purchase. The service provider will help you do this, and don't worry: they won't let you email without a plan, so there won't be surprise charges.

Will you need internet access?

Sometimes having the internet at your finger tips can be very helpful, however, be careful using it without including it in your plan as the "per minute" charge can be hefty. It's also pertinent to know that with the exception of the iPhone, most cell phones do not have a great web browsing user experience. The pages often look different than on a computer and usually take longer to load.

What is your estimated amount of usage?

If you have had a cell phone before, refer to your bill to get an estimate of your monthly usage. This will help you determine which plan will suit you best and whether or not you should subscribe to a monthly plan or pre-paid plan. It's always better to spend a little more the first month on an abundance of minutes because you can simply change your plan once you've documented your average usage.

Will you be traveling internationally and need use of your phone?

This is an important question simply because it seriously limits the type of phone you can use as well as which provider carries it. Global System for Mobile communication (GSM) makes international roaming available to its users, so you'll have to find a carrier that uses it. The alternative is Code Division Multiple Access (CDMA). These are the only two networks available and each phone is made for one or the other therefore they cannot be used interchangeably. AT&T and T-Mobile currently use GSM whereas Verizon and smaller carriers use CDMA.

Be sure to answer all of these questions before you make your purchase.

To make this process easier, I'll break down the most popular services to give you access to all of their information in one place.

A study done by J.D. Power and Associates in 2006, revealed the top cell phone providers by region within the United States as T-Mobile and Verizon. The results were as follows:

• Northeast: T-Mobile & Verizon Wireless (Tie)
• Mid-Atlantic: T-Mobile & Verizon Wireless (Tie)
• Southeast : T-Mobile & Verizon Wireless (Tie)
• Southwest : T-Mobile
• North Central: T-Mobile, U.S. Cellular & Verizon Wireless (Tie)
• West : T-Mobile & Verizon Wireless (Tie)

T-Mobile was also rated highest in their Customer Care Performance Study.

Because Verizon Wireless and T-Mobile rank highest among their service, let's take a look at these two providers in-depth.

Verizon Wireless

Top10Reviews.com rates Verizon Wireless as the best provider of 2008. Verizon offers plenty of services including pre-paid plans, family plans, international plans, and free nights and weekends. Their most basic plan includes voice mail, numeric paging, caller I.D., call waiting, call forwarding, three way calling and conference calling. This plan usually costs around $40 a month.

Every service provider requires that a contract be signed in order to initiate service, and if you terminate your contract before its end date, the company can inflict an early termination fee. These fees are usually jarring but Verizon actually has one of the lower fees at $175.

On a personal note, I used Verizon for almost three years and finally had enough. Don't get me wrong, their network was great. I can't remember the last time a call was dropped when I was with Verizon. I seemed to have service everywhere and it was always crystal clear. However, their customer support is dreadful. It was always a challenge to get a friendly voice on the phone and I never felt like anyone was actually listening to me. Great customer service is incredibly important to me. Their lack of it made me switch.

T-Mobile

Top10Reviews.com actually rates T-Mobile as the third best cell phone service provider but only by a hair. T-Mobile offers everything that Verizon Wireless does except an international plan. This doesn't mean that you can't use your phone internationally; it simply means that their network has the technology built in. Their basic plan is also very similar. You can enjoy everything offered by Verizon Wireless except conference calling and numeric paging. All, of course can be purchased as part of a better package. Their basic plan runs about the same at $40 a month.

T-Mobile's early termination fee is also a little more expensive than Verizon's. They charge $200 to cancel your contract early.

After leaving Verizon Wireless, I signed up with T-Mobile. I upgraded my phone which was very complicated. But all I had to do was call 611 on my phone and the nicest folks I've ever spoken with helped me through this very difficult process. They were patient and listened to me intently. I'm so impressed with their customer service that it's actually a lot easier to overlook the fact that their call service isn't the greatest in my area. I've dropped calls and haven't had cell service in very populated places. This is a disappointment to me, but I'm willing to give a little.

Choosing a provider is never easy, but with these bits of information you should find yourself much more prepared to make an informed decision.