10 Tips for Finding the Best Cell Phone, Plan and Deal
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The cell phone market is exploding with choices. While this is generally great news for consumers, the process of making a decision is more complicated than ever. To help, Dealhack has compiled ten tips you can use to find the best deal on the phone and service plan that is right for you.
1. Figure out what you need before you start shopping.
 Unless you start with a clear sense of what you need, you will probably end up with the wrong solution. (We gave similar advice in our article on Dell PC Buying Tips, but it bears repeating here.) Mull over your personal work and play patterns and think about how they will impact your cell phone use.
How much do you talk on the phone each month? Does your usage vary or is it pretty consistent? Do you travel a lot or stay close to home? Do you make calls for business or to a few family members all on the same network? Asking these types of questions up front can help you narrow your focus.
The primary factors to consider are:
- The functions you want in a phone.
- The features you want in a service plan.
- The carrier with the best reception.
- The total lowest cost solution.
Depending upon your needs and geographical location, the order of these priorities will probably vary.
2. Find the right phone.
There are three basic categories of mobile devices, each aimed at different users:
Text and email optimized devices are designed for messaging and integrate well with IM and email applications. Examples include the Blackberry devices (8700 series, 7200 series, 7100 series), the Sidekick II and the Treo 700w.
Media optimized phones focus on video, music, photos and web browsing. Examples include the Sony Ericsson W Walkman Series (W800i, W600i, W300i, W900i and W950), the Nokia N Series (N90, N91 and N70) and Verizon V-cast enabled phones (Samsung SCH-a950, LG VX8100 and Audiovox CDM8945). Most manufacturers further segment their offerings with a phone optimized for each specific media use.
Small form factor phones are ultra light, portable, and easy to use. Generally speaking, Motorola owns this space with their four-letter phones (RAZR V3, SLVR L7, and PEBL). However, Samsung also has several competing models (including the A900, A850 and T309).
While there is overlapping functionality between different types of phones, your best bet is to focus on the category that most closely meets your needs.
3. Consider the network technology.
 When selecting a phone and service plan, it is helpful to know there are two competing technologies: CDMA and GSM. The carrier selects a technology for its network and the phone you purchase must be compatible.
If your carrier is Verizon or Sprint (who both use CDMA), choosing a phone goes hand in hand with the process of signing up for service. The phone is tied to your contract.
However, if your service is with Cingular or T-Mobile (who both use GSM), it is much easier to switch phones. This is because GSM phones contain thumbnail-sized SIM cards, which connect your phone to a specific telephone number and calling plan. Thus, if you want to use a new phone, you need only take the SIM card out of your old phone and insert it in the new one.
Some GSM phones are sold as "unlocked" because they are not packaged with a service plan. You pay a higher price for an unlocked phone but you don't have to make a service commitment. Depending on your circumstances, this approach can often lower your total price.
4. Look at the service providers.
Once you hone in on a specific type of phone, the next place to focus is on which phone company to use. There are four national carriers who provide service in most U.S. metropolitan areas: Cingular, Verizon, Sprint/Nextel and T-Mobile.
You can get a lot of detail regarding their service plan options directly on their websites; however, don't buy there. They rarely offer the best deals directly. Instead, see tips #6-9 below on finding the best deals.
5. Whenever possible, test before you buy.
 Generally speaking, cell phone reception has more to do with the quality of the network than the particular phone.
If you are a road warrior, find the network with the best coverage throughout your entire territory or in the cities you visit most frequently.
If you don't travel much, look at coverage in these key areas: your home, office, daily commute and favorite hangouts. Since the quality of service in any specific location is a function of the distance to the closest cell tower, there can be a big different between carriers in any given spot. This is especially important if you live in an area with pronounced topographic features such as mountains or canyons.
Whenever possible, test before you buy. Ask around among your friends to see who has what service. If you can, talk a friend into loaning you a phone for a day to try out the reception in all the places that are important to you.
6. Save big by signing up for new service.
You always score the best deal on a cell phone by signing up for new service. If you are at the end of an existing contract, either switch service providers or cancel with your current provider and then sign back up as a new customer. When you switch from one carrier to another, you can take your number with you. However, there is no practical way to sign up as new with your current provider while still keeping your old number. Therefore, if you like your current carrier and want to sign up for another term, you will have to choose between getting the best price or keeping your number.
There is an exception though. Some have reported that they've gotten a good deal through their existing carrier by calling and requesting to cancel, waiting until the call is transferred to the cancellation stop-save agent and then negotiating for a new phone or a better deal. If you are willing to cancel for the better deal, you might try this approach on your way out the door.
7. Buy through a third-party merchant.
 The cell carriers never offer the best deals directly. We have found that Amazon and Buy.com offer the best deals on most new cell phones. This is because the carriers pay them money to send new customers. The merchants use some of that referral money to create additional purchase incentives for you.
If you've never purchased a cell phone through a third-party retailer, the process is straightforward. Each listed phone shows the bottom-line pricing and the service provider. (Therefore, once you've decided which carrier you want, only look at cell phones that are packaged with your target company.) You can view plan options before purchasing. Even after you've ordered your phone, your commitment doesn't begin until you receive it and activate the service.
8. Look for "free after rebate" deals.
Almost every popular phone is offered "free after rebate" at some point. Therefore, it is worth keeping an eye on pricing until you find the best bargain. Dealhack also calls out great cell phone deals when they pop up.
The pricing usually includes a combination of instant savings and a rebate. Be forewarned that rebate payments generally arrive eight or more weeks after a minimum period of active service (up to 180 days). So while you can usually find deals that are free after rebate, you will have to wait many months to recoup all your money. However, the total pricing still makes it worthwhile.
While some phones are even occasionally offered as "cash back after rebate," we recommend that if you are watching for the best deal on a popular phone; pull the trigger when you see it for free. The cash back deals are usually only offered on phones that aren't selling as well.
9. Consider canceling an existing plan to upgrade.
 If you are ready to upgrade your phone but have more time left on an old service commitment you are not necessarily locked in. Often times, with a free after rebate deal, it is still cheaper to cancel your old contract, incur the penalty fee and then initiate a new service deal than it is to upgrade your phone through your existing carrier. The pricing difference can be that significant. However, be sure to run the numbers before you make a move because every situation is different.
10. Return the phone if it doesn't work for you.
When you are researching your options and signing up for your phone, make note of the return policy. Most plans specify a short window during which you can cancel the service, return the phone and get full money back. If possible, time your purchase so that as soon as you receive your phone you can test it heavily during that period. If you are not happy, return it immediately. While there's no question doing so is a bit of a hassle, it is better to quickly correct a mistake than get locked into a plan that doesn't work for you.
Bottom line:
There is no need to pay hundreds of dollars to upgrade to a cool new phone. Employing the strategies outlined above should help you find the best phone and service plan for your needs at minimal cost.
Dealhack is a blog updated daily with shopping bargains including sales, coupon codes and deals on a wide variety of tech and consumer products. Check out these options to stay on top of the best deals:
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