Cellular Overview - Understanding the Basics

Updated on Apr 21
by PhoneDog LLC,

The cellular industry in the U.S. is currently dominated by a handful of national and regional carriers as described in Chapter 3.  National Carriers are typically major corporations who offer service in most areas of the nation, while Regional Carriers target certain geographical areas within the U.S.  We recommend reviewing the benefits and disadvantages of each national or regional carrier to find one that best suits your needs.

What to Expect from the Carrier
The carrier is responsible for providing you with your initial phone purchase and cellular service based on the rate plan of your choosing.  In return, almost every carrier will expect you as the customer to commit to a 1 or 2 year contract agreeing to pay for the service until the term expires.  Pre-paid services are also available from many carriers, although you’ll pay much more for the phone and service than you would with a monthly service plan.

National Carriers

Regional Carriers

Activation Fees
Every major carrier charges an initial fee to activate a new account. The average activation fee is $35 per line, but it can vary by carrier.  Activation fees are often waived during special promotions, although these promotions are becoming increasingly rare.

Credit Requirements
All carriers will require credit verification for the main account holder on post-paid plans.  You can expect to submit your Social Security number during registration before the carrier will approve your service.  Every carrier has its own credit score requirement policy, which is not published.  Customers who fail the initial credit check may be asked to pay a deposit or may be denied outright.  Consumers who do not qualify for service should look into the purchase of a pre-paid plan or phone.

Taxes and Fees
Similar to traditional home phone service, you can expect to pay additional taxes and governmental fees with all cellular plans.  The various taxes and fees are listed below, but for simplicity's sake expect to add approximately 17-28% to your plan price for these fees.  “Taxes” are based on a percentage, while “fees” are a fixed based on local, state, and FCC regulations.  The lower priced plans ($19-$35) will incur a higher overall percentage of taxes and fees, while more expensive plans ($69 and up) will incur a lesser overall percentage.

Keeping your current phone number
In most cases you can keep your existing cellular number and sometimes even transfer your home number to your cell phone.  As long as your existing number is listed in your name, then the transfer is likely to be swift and easy.  If the existing number is in someone else’s name, then you’ll need to first contact your existing phone company and transfer service into your name before your number can be transferred.

Reliability and Signal Coverage
While cellular service continues to improve, you should not expect cellular service to be as clear or reliable as traditional phone service.  In most areas, cellular service is certainly more than satisfactory for the average user.  However; cell service will not work everywhere and is susceptible to signal loss in some homes, buildings, and rural areas where cellular towers aren’t located.  Keep in mind that cellular carriers do not guarantee service to work everywhere within their coverage area, although most people are willing to give up some quality for the flexibility that cellular service offers.

• Comments

Jeff

Thursday, October 02, 2008I live in a rural area. I just got a new Nokia 6555 and the signal reception is terrible. What phone has the best signal reception??

kris

Sunday, September 14, 2008I have a verizon phone and i have to admit it`s great. Before I had tmobile but they were terrible. service sucked and the costumer service was crapy too. I bought the phone from small store retailer in brooklyn and i m happy with it. As far as online stores i think people are still not trusting online as person to person sale. I know yodaphone.com is pretty good at this with bunch of other sites. Cheers.

luis

Sunday, August 31, 2008hi noah,...i just wanna know how much is the LG env2,... cauz i just wanna buy the phone only,...and it can be carry by verizon wireless,....and which is the better, env2 or sony ericson w580i??,....please,..reply to my questions,...thank you

portia

Sunday, August 24, 2008hey how are you doing

Raymund Del Rosario

Friday, August 22, 2008I have a helio fin phone and i haven't seen any reviews on it. I just wanted to know if i missed out on the episode. i really like this web site and thanks for all the hard work. Ray

paul hamptonjr

Wednesday, July 30, 2008iwantacelluarphonedownloadringtonesandbluetooth.andmustin31087zipcode.

Frank Sarfo

Tuesday, July 29, 2008I have had a nice information from your website. Keep it up!

eric s.

Tuesday, July 22, 2008Which firm would you go with for a two week GSM phone rental for use in Japan, with v/mail, calling to and from U.S.?

bev Chirhart

Thursday, July 17, 2008Is there any plan that does not require a two year contract to start service. I have t-mobile, my contract is running out, but I am upset with the service we have had and don't want to have to commit to another two years, tho I can't seem to find a plan that works better for us

Beth Bacon

Wednesday, July 16, 2008I lost my ATT (GSM) phone and would like to buy a replacement so that I do not have to extend my existing phone plan. Because my phone is lost (fell in the bay), I cannot exchange the SIM card. Can I still buy a replacement phone with this plan?

apondi christine

Friday, July 11, 2008this is informative1! can i have it please?

Michelle -

Thursday, June 26, 2008Thanks for the good information on Insurance.. I thought I was the only one who thought it was nuts, but I never realized it was that bad. I think a manufacturer's warranty is good enough for me, but the Ebay idea is really smart!

Benedicto Phiri

Tuesday, June 17, 2008This is a fantastic example of B2C ebusiness for sure i have liked it.

beth sanders

Monday, June 16, 2008major complaint with t-mobile: just thursday night i recieved 4 messages from monday 1 from my childs school telling me they are letting the kids out early-make sure someone is home 1 from a client waiting to see a house (i'm a realtor) 2 from banks concerning another deal all very important- all making me look incompetant and this is not the first time

Syira Saad

Friday, May 30, 2008how to delete exceed of web sessions in Motorola L6

Timothy Carpenter

Thursday, May 22, 2008I have a Southern Linc model i355 motorola phone. I was told my sim card would not fit in a nextel phone. Is this true?

bill townley

Monday, May 19, 2008i have Alltel service and would like a new phone. I don't believe the AudioVox phone CDM 8910 that I have has a sim card. What can I do?

betty williamson

Tuesday, May 13, 2008I have a account with suncom and am in need of an another phone.I like this one. How can I purchase one and how much?

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