Consumer Reports Looks at State of Cell-Phone Service:
Carriers Not Delivering on their Promises to Consumers

CR calls on FCC to require carriers to provide E911 and set standards for service quality

YONKERS, NY -- It's happened to many of America's cell-phone users: They buy a cell-phone plan believing they are getting nationwide coverage. Then they open their monthly cell-phone bills. Surprise turns to dismay as they read unanticipated charges for line items such as roaming fees, long-distance roaming fees, and toll-free calls that were not toll-free at all.

The February 2002 issue of Consumer Reports (CR), on newsstands Jan. 15th, features as its cover story "The Complete Cell-Phone Guide," which provides consumers with a comprehensive look at how billing charges can accumulate and strategies for making the smartest cell-plan choices. The special section also includes overall ratings of cell-phone performance in nine major cities, evaluations of more than 20 phones and 13 headsets, and an article on distracted driving ¾ why driving and calling don't mix.

In addition to its tips and tests, CR is calling on the Federal Communications Commission (FCC) to ensure that carriers improve their cellular service. CR recommendations include:

· Requiring carriers to provide Enhanced 911 - the ability to pinpoint a caller's location - well before 2005 and require them to overcome technical incompatibilities among competitors.

· Guaranteeing that you can keep your cell-phone number if you switch carriers, which the FCC has mandated, but no carrier has yet implemented. The FCC keeps postponing its deadline and is now considering a request from Verizon to eliminate the requirement.

· Auditing the coverage maps that carriers show to prospective customers, which currently aren't independently audited by anyone. As a result, consumers never see the carriers' dead spots - areas where they are unlikely to pick up their carrier's signals, resulting in unexpected roaming fees or no service at all.

"While cell phone providers have tried to portray themselves as alternatives to landline telephones, they have not delivered on their promises to consumers. This is particularly true in an important safety area-providing the same quality emergency service on the road as at home. Many Americans get cell-phones for emergency situations, yet carriers have not made it possible for rescuers to readily find an emergency caller even though the technology exists," says James Guest, President and CEO of Consumers Union. "Carriers have also yet to deliver on their claims for a truly competitive marketplace. For competition to work, consumers must be able to switch companies without having to give up their phone number-or ideally their cell phone-concessions they don't need to make when changing their home long-distance provider.

We believe that consumers are entitled to minimal quality service standards and standardized comparative information on the cellular plans in their market, so they can make the most informed purchasing choices."

Sizing up your cellular needs

When it comes to choosing a plan, the first step is determining how often you anticipate using the phone and where and when you are making your calls.

A chart developed by CR in conjunction with TeleBright, a leading source of information on wireless service plans, underscores the importance of reading all the fine print and carefully matching your expected calling patterns with the right plan. Case in point: TeleBright calculated that a frequent user, who spends roughly 20 hours a month on the cell phone (including 80 minutes of long-distance), who signed up with the $50-a-month Sprint Free and Clear 5000 plan would end up paying a $172 monthly bill. The plan includes 500 peak and 4,500 off-peak minutes a month.

Consumer Reports cell-phone tips for getting better service, better rates, and a better plan

Consider a prepaid plan first to evaluate coverage and service. Once you are satisfied, you can ask the company to convert you to a monthly plan; most will gladly do that at no charge. In addition, pre-paid plans also allow you the flexibility to switch providers easily if the service is not to your liking. You can also ask neighbors or colleagues for service recommendations before signing a cellular service contract.

Once you have chosen your plan, then choose your phone. Consumer Reports rated more than 20 phones offered by the leading carriers. All have analog capability, which we consider essential for roaming. Generally, CR found phones that fold out convey voices better than those that are flat. CR also recommends a tri-mode phone, the most versatile type, for national and regional plans offered by AT&T, Cingular, and Verizon. They connect digitally in cellular and PCS frequency bands, and they support analog calls as well.

Make sure the headset you want works with the cell phone you have. Most phones have a standard 2.5 mm stereo plug for a headset, but Ericsson and Nokia models require an odd size. CR assessed comfort, call clarity when speaking and listening, and other conveniences for 13 different headsets.

Don't rely too literally on the call timers built into many phones. They don't always square with how networks track cell time. For example, billing for outgoing calls may start when you push the Send button, not when a call is answered. Calls may be rounded up to the next minute.

To subscribe to Consumer Reports, call 1-800-234-1645. Information and articles from Consumer Reports can be accessed online at www.ConsumerReports.org.

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FEBRUARY 2002
The material above is intended for legitimate news entities only; it may not be used for commercial or promotional purposes. Consumer Reports® is published by Consumers Union, an independent, nonprofit testing and information-gathering organization, serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.
OPI:AN:12/14/01

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