Microsoft Word - cellphone guide revision 08-31-05.doc

CELL PHONE SAVVY:

A GUIDE TO GETTING THE MOST OUT OF YOUR

CURRENT AND FUTURE CELL PHONES AND

AVOIDING BEING OVERCHARGED IN NYC

NEIGHBORHOODS

A REPORT BY PUBLIC ADVOCATE BETSY GOTBAUM

Revised AUGUST 2005

Visit us on the web at www.pubadvocate.nyc.gov

or call us at 212-669-7200.

Office of the New York City Public Advocate

Betsy Gotbaum

Public Advocate for the City of New York

PREPARED BY:

Jill E. Sheppard

Director of Policy and Research

Jesse Mintz-Roth

Policy Research Associate

WITH THE ASSISTANCE OF:

Dianna Payne

Ombudsman

Peter Hitt

Deborah Oriscak

Laura Smith

Anna Stallman

Interns

Contents

Hear Me Now: Reception and Service Areas

 Infrastructure Updates in the New York Area

 Advice for Commuters and Travelers: Trains and Subways Wired for Cell Phones

 How to Determine Reception Quality Before You Buy

Optimizing your Contract

 What’s the Best Way to Sign Up for a Contract?

 How Long Do I Have to Keep My Contract?

 When Is the Best Time to Negotiate for Deals?

Picking a Contract Type

 Jet Setters: Options for New Yorkers Who Travel

 Uncomplicate Your Life: How to Simplify Billing for Your Household

Service Plans

Picking a Contract Term

 How Long Do Phones Last?

 Should I Buy Phone Replacement Insurance?

 What if I Lose My Phone or Want to End My Contract Before It’s Up?

Activating Service

• When’s the Best Time to Get a Good Deal on a New Phone?

• Should I Take Any Precautions About Renewing My Contract with My Existing

Provider?

• Why Should I Be Careful When Changing My Minutes and Features?

Picking a Phone

• What to Know If You Use Your Phone Frequently Outside New York City

• For Users of Older AT&T Wireless Phones

Picking a Carrier

• Can I Bring My Number to a New Carrier?

Text, E-Mail and Multimedia

 Text Messaging Keeps You Informed

 BlackBerry and Smart Phones

 What’s Next: Broadband Everywhere

Where to Shop

Getting Rid of Your Old Phone

Filing Complaints

Other Resources and Guides to Cell Phones

- 1 -

Want to avoid losing a call when you drive through a tunnel on the way to work?

Want to change your home phone number to a cell phone number?

Curious about how to get the best deals on a new phone in New York City?

Would like to know where to shop to avoid lines, fees, and bad advice?

This guide from the Office of Public Advocate Betsy Gotbaum will help you learn which

questions to ask before you commit to a plan or adjust your service. Check out the tips

below to find out how to get the most out of your cell phone service plan now and in the

future.

Most residents of the five boroughs use cell phones and many are giving up land lines

completely. New Yorkers make up a high percentage of the 3.8% of American

households, or about 4.1 million people, who have given up their landline in favor of a

cell phone.

This trend is on the rise.

Some callers find cell phones are cheaper than landlines. Most national plans come

standard with free long distance, let you talk for free in other major metropolitan areas,

and give you free calling during off-peak hours.

Cell phones fit a life spent on the move and away from home. Area codes 917, 646, and

347, primarily area codes for cell phone numbers, have become almost as identified with

New York City as 212 and 718. And now you can take your number with you from one

cell provider to the next or from a landline to a cell phone.

Hear Me Now: Reception and Service Areas

Having good reception in the places you will use your phone is the most important

criterion you should consider when choosing or switching providers. Although New York

City, and especially Manhattan, has more cell phone towers than other large cities in the

country, there are many variables that determine the quality of your reception. Reception

may be stronger in particular corners of your apartment, or your phone may not work in

your home at all. You don’t have to put up with it: find out which carriers have good

reception in your area or give a phone a test drive.

Infrastructure Updates in the New York Area:

Wireless service providers each have their own infrastructures around the city, and

reception quality changes. For example, Cingular’s coverage and service in the New

York City market recently improved when it merged with AT&T Wireless.

Verizon

Wireless has spent nearly $1 billion improving its service in the New York area since

This guide is based on information current as of 01/25/05. The best way to stay up to date with new

technology and constantly changing service plans is to do research and to ask the right questions. Please

also see the disclaimer at the end of this guide.

Cell Phone Displace Landlines in Record Numbers. Mediamark Research Press Release 09/24/04; Cell

Phone Taxes Jar New Yorkers, New York Sun 10/11/2004.

Cell Phone Reception—New York, NY. http://www.cellreception.com/city/newyork/page2.html.

Accessed 1/31/05.

- 2 -

Is it free to port my number to

another carrier when my

contract is over?

Yes! All cell phone subscribers

pay a federal tax every month to

make this possible. There is no

charge to bring your number with

you to a new carrier when your

contract ends.

2001 and through a contract with the Metropolitan Transportation Authority (MTA)

controls the wireless infrastructure in the Queens Midtown and Brooklyn Battery

Tunnels. Wireless service is more consistent on all carriers in the Lincoln and Holland

Tunnels since each wireless carrier has its own contract with the Port Authority of New

York and New Jersey.

Advice for Commuters and Travelers: Trains and Subways Wired for Cell Phones

Verizon also serves the Amtrak/NJ Transit rail tunnel connecting Penn Station to New

Jersey, as well as the Washington DC Metro, and will soon serve the San Francisco Bay

Area’s BART system. The MTA looked into wiring the City’s subways in 2001, but

abandoned the idea in September 2004 due to high costs.

How to Determine Reception Quality Before You Buy:

• Ask Around: Ask colleagues in your office and neighbors in your building to

find out which providers they use, how well their phones work, and where they

don’t work at all.

• Search on the Web: Use search terms like “cell reception,” your neighborhood

name, the wireless carrier, and “New York City” to find many of the sites and

forums dedicated to information on reception quality. A sample of useful websites

include:

• Cellreception.com. Search by city or zip code down to the intersection.

• Cellphoneforums.net. Search this online forum for information on phones,

reception, and plans.

• Cellguru.net. Focuses on New York and other states in New England,

rating reception in cities across each state from each of the major cell

phone providers including roaming information.

• HowardForums.com. Prolific forums about all cell phone issues and

questions you may have.

• T-Mobile.com. T-Mobile has reception maps in the “coverage” area of its

website that predict reception

quality around your

neighborhood.

• Got Commitment Issues? Take a

Phone on a Test Drive: Each of the

national carriers discussed in this

guide will let you try a phone for at

least 14 days before you commit to

your contract.

Cingular gives you 30

days. Just ask!

Airbus: Mobile Phones Set to Soar. New York Post 09/16/2004.

Press Release 303-03, 10/27/03: Mayor Michael R. Bloomberg, DoITT Commissioner Gino Menchini, and

Consumer Affairs Commissioner Gretchen Dykstra Announce Program to Track Cell Phone “Dead Spots”

Citywide. Check your carrier’s plan for details; there may be some non-refundable costs such as the

activation fee, minutes used, or a re-stocking fee.

- 3 -

You may be eligible for an Employee

Discount!

Wireless providers offer discounts to

employees of hundreds of companies on

phones, plans, and accessories.

Employees of the City of New York—the

City’s biggest employer—for instance,

qualify for big discounts on monthly access

charges. City employees can sign up to get

20% off with Sprint, 20% off with Cingular,

19% off with Verizon, and 10% off with

Nextel. Inquire with your company or call

your wireless provider to find out if you are

eligible for a corporate discount and sign up.

Optimizing your Contract

It’s a big deal that you can now take your number from your old wireless provider or

a landline and bring it to a new wireless provider. Over 8.5 million people did it in the

first year it was possible.

If you don’t like your plan, or your service, you too can try

another provider. Now wireless service providers are pricing service plans more

competitively. Since wireless consumers can now change carriers, providers not only

have to initially attract consumers but also keep them on board after their contract expires

with ongoing incentives.

What’s the Best Way to Sign Up for a Contract?

Signing or renewing a cell phone contract can be done as quickly and easily as shopping

online for anything else. However, taking more time to window shop online, at stores or

in newspapers to find the right plan with the most attractive promotions or a discounted

full-featured phone can also be a rewarding experience. Compare prices online and in

stores for plans—sometimes discounts on voicemail and other add-ons are only available

online.

How Long Do I Have to Keep My Contract?

Your contract is the amount of time you are

legally bound to stay with your wireless

service provider. Most contracts last 1 or 2

years from the time you begin your service.

Some carriers will let you sign up without a

contract term—either by providing the phone

yourself or by opting for a pre-paid contract—

but you won’t be eligible for as many discounts.

When is the Best Time to Negotiate for Deals?

Signing up for a new contract or renewing your

contract is the best time to get new perks such

as promotional minutes, a discount on a

sophisticated new phone, a better deal on a

plan, more airtime, or other loyalty discounts (if you’re renewing). When renewing, it’s

in your interest to get the most out of the new contract and compare offerings with other

carriers rather than taking the first thing your existing carrier offers you—such as a small

discount off your next bill.

LNP a year later shows 8.5 million people switched carriers. Mobile Tech News 11/24/2004.

- 4 -

Picking a Contract Type

Jet Setters: Options for New Yorkers Who Travel

New Yorkers are frequent travelers within the tri-state area, other states, and other

countries. National plans give you the flexibility to travel to other metropolitan areas in

the country without worrying whether you are being charged additional fees to roam

outside your service area. Check out the coverage map on the Internet or the carrier’s

brochure to see if your national plan includes Canada in its coverage area. Some Cingular

and T-Mobile plans will also let you roam around the world for a fee.

Regional plans will save you money and give you more talking time than national

plans if you never plan to use your phone outside the tri-state area.

Uncomplicate Your Life: How to Simplify Billing for Your Household

Family plans allow couples and families to split minutes between two or more lines as

needed. Additional phone lines for your family members can be added for a small

surcharge, currently around $10 each.

Service Plans

Most New Yorkers spend $60 or less on their monthly cell phone contract.

Each

carrier offers many types of service plans that are in this range. Visit a cell phone retailer,

website, or an online cell phone retailer like cnet.com or amazon.com that carry plans

from several providers to compare available plans. Other guides to cell phones listed in

the Resources section below also compare plans of several providers. Service plans

offerings are always changing and you should consult an authorized dealer about contract

terms before picking one.

Test-drive your carrier. All carriers in New York City give you a trial period of at least

14 days before you are committed to your contract term. Cingular gives you 30 days.

Picking a Contract Term

1 year

Pros:

• Shorter commitment in case your phone

needs repairs, a new battery, or is lost.

• You have more flexibility to shop for

new plans and get discounted phones

more frequently when you sign up for

new service.

• You can keep your phone without a contract as long as you like after your term

ends with no penalty for quitting.

According to amazon.com, best-selling phone contracts in New York, NY. Accessed on 1/27/05.

Best & Worst of Early Contract

Cancellation Penalties

$150 – Sprint (cheapest)

$175 – Verizon

$200 – T-Mobile

$200 – Nextel

$240 – Cingular (most expensive)

Note: Cingular prorates early contract

termination fees based on the remaining term.

- 5 -

Cons:

• Activation fee and/or phone may be more expensive.

• Not eligible for some promotions that 2-year contract subscribers receive (e.g.,

Verizon offers a $100 discount toward a new phone—which would extend your

contract—in the 22

month of a 2-year contract).

2 years

Pros:

• Activation fee and/or phone may be cheaper.

• Phone may be more discounted.

• Some special promotions may only be available with 2-year contracts.

Cons:

• You are more likely to spend money insuring, repairing, or replacing your old

phone.

• Less frequent opportunity to buy a new phone, be eligible for new service options,

discounts, or switch carriers.

Pre-Paid/No Contract (not available on all carriers)

Pros:

• You have no commitment to keep service.

• Your credit history is unimportant.

• No penalty for quitting.

Cons:

• Minutes are more expensive.

• Not eligible for most contract-based

promotions (such as in-network calling,

unlimited nights and weekends, etc.—check

with your carrier).

How Long Do Phones Last?

Of the 98.9 million cell phones purchased in the U.S.

in 2004, about 20 to 25% of phones needed some

sort of repair within the first year. Cell phones

now last 19 months on average

—less than the

length of a 2-year contract. Phone batteries usually

can hold a good charge for about one year, after

which a new battery can run you at least $30. And as

phones have become more complex with cameras and

other features, there is a greater possibility that their

internal gadgetry or moving parts (like the hinge of a

flip-phone) could break.

When Phones Go Bad: Fancier Gadgets Mean More Acute Problems. Washington Post 10/31/2004.

NYC Cell Phone Laws

• New York State law

prohibits the use of

hand-held cell

phones while driving

on all public roads,

except in the case of

an emergency. Use

hands-free

equipment like a

headset instead.

• Using your phone

during performances

of any kind is illegal

in New York City.

- 6 -

Should I Buy Phone Replacement Insurance?

There are many levels of phone replacement insurance and it costs about $4-6 per month.

It’s more worthwhile if your phone is very expensive. Read the fine print: most

replacement plans have additional deductibles and do not cover loss or physical damage.

Due to their costs and details, only about 10% of cell phone subscribers choose to

purchase phone replacement insurance plans.

What If I Lose My Phone or Want to End My Contract Before It’s Up?

After the 14-day trial period when you first buy your phone, the penalties for breaking a

contract begin at $150 and may be as high as $600, depending on where and when you

bought your phone (see “where to shop” below). You are still committed to your

contract even if you break or lose your phone. If you buy a new phone before the end

of your contract, ask whether you can get a discount on the new phone for being a

longtime customer. You may be able to get a consumer loyalty discount, but it will most

likely extend your contract and not be as good a discount as you could get by signing up

for new service.

Activating Service

When’s the Best Time to Get a Good Deal on a New Phone?

Wireless carriers give new customers the deepest discounts in exchange for a new

one- or two-year contract. These savings can make phones that retail for several hundred

dollars free or nearly free with a new service contract. Compare prices online, in carrier

stores, at small stores, and in advertisements in weekly newspapers like The Village

Voice. You may also be able to find a rate plan that is cheaper than your current rate.

Should I take Any Precautions About Renewing

My Contract with My Existing Provider?

If you want to stay with your current provider

after your contract expires, you may be able to

negotiate a cheaper rate plan directly with your

carrier. Providers sometimes offer their customers

loyalty discounts on their plans based on their

tenure with the service and whether they have

multiple accounts.

Why should I Be Careful When Changing My

Minutes and Features?

Take the precaution of asking the customer

support staff every time you change your plan whether the change you are making will

affect your contract term. Extended minutes or additional features might not be available

with your current plan or may qualify as additional promotions. Taking on new

promotions (such as more minutes, earlier weekends, or in-network calling) may extend

your contract.

Ibid.

Can I get a free cell phone?

Æ Yes, if you sign up for a new

contract and have good credit. Free

phones are found in almost every store,

but are slightly more common online

and in small authorized dealers.

Æ Sometimes the free phone may

factor in an in-store or mail-in rebate.

Ask whether the price includes rebates

and if so how long it will take for them

to process. Some may take a few

months.

- 7 -

Useful for Domestic Travelers

• Travelers to other big cities should find that all

wireless providers have good service in big cities.

• Dual-Mode and Tri-Mode phones work on both

the digital network found in cities and inner

suburbs, and the analog networks still remaining in

outer suburban and rural areas. Other providers are

building their coverage in outer areas but are still

less likely to have coverage as comprehensive in

outer areas as Verizon and Sprint, even when

they roam.

Useful for International

Travelers

World Phones available on

Cingular and T-Mobile can

operate on GSM (Global

Standard for Mobile)

networks worldwide.

Picking a Phone

Selecting a phone can be both an exciting and daunting task. Phones today have been

reinvented as personal digital consoles that optionally come with cameras, screens able to

display video in thousands of colors, personal organizers, the ability to send and receive

multimedia messages, surf the net, listen to MP3s or the radio, play videos games,

download elaborate ring tones, or connect to other electronics and your computer with a

cord or wirelessly.

It may be fun to entertain having all of these features on a single device in your pocket,

but they are all optional as none of them affect the calling capabilities of your phone.

When you pick a phone the most important criteria to consider is which carriers have the

best service where you will be making calls most, and if you spend time outside the city,

how your phone will work in other locations.

What to Know If You Use Your Phone Frequently Outside New York City

In areas where your provider’s signal is weak, your cell phone can roam on other carriers’

networks. But there may be a fee: your carrier’s coverage maps are not usually detailed

enough to tell you how your reception will be in a locality, but you should still consult

them (available online or in a brochure) to find out whether the area you are going is

covered by your rate plan or whether you might be charged for domestic roaming.

Do you spend much

time outside the city in

rural areas or less-

populous areas? If so,

you are more likely to

find better reception in

those areas with a tri-

band phone that works

with digital and analog

bands from Verizon or

Sprint. All national

carriers today have

expansive and increasing coverage areas, but Verizon and Sprints’ networks are the most

extensive outside major metropolitan areas. Still, if you can, you should ask people who

live or work in those areas which providers work for them before making your decision.

Avoid Roaming Charges: You are roaming when

you are outside of your provider’s coverage area on

your provider’s coverage map and using another

wireless provider’s signal. Sometimes the word

roam or the other provider’s name will appear on

your phone’s screen. Roaming is billed by the

minute and can be quite expensive. To avoid

roaming look at your coverage map to see if areas

you go are covered by your provider, or call and

- 8 -

ask. Roaming in foreign countries, sometimes including Canada, is even more expensive.

Find out the roaming prices on your provider’s website before using your phone abroad.

Do you want to use your phone internationally? Multi-band GSM world phones sold

by Cingular and T-Mobile are compatible with extensive cell phone networks in Europe

and Asia. Note that international roaming charges can be expensive. If you plan to use

your phone frequently abroad, it might be cheaper to buy a prepaid cell phone when you

get there.

For Users of former AT&T Wireless Phones using TDMA/AMPS technologies

Cingular supports AT&T Wireless’ older TDMA (Time Division Multiple Access) digital

and analog AMPS phones. The network will be phased out in the coming years in favor

of GSM. Users with older phones will still be able to use them, but new customers will

not be able to activate new TDMA service.

Picking a Carrier

In the last few years cell phone minutes have become cheaper. Today a $40 plan can

buy you up to 1000 anytime minutes. The same amount would have bought a mere

fraction of that amount of time in the late 90s. Many incentives, like unlimited calling on

nights and weekends, are now standard on most plans. The following is a list of

promotions that the country’s national wireless providers (Cingular, Verizon, T-Mobile,

Nextel) offer today with new contracts.

Which providers do your friends and family use?

If it was included in your contract when you signed up, you can chat with others who use

your carrier for as long as you want at any time of the day for free on:

• Verizon

• Nextel

• Cingular

Or for a small monthly fee on:

• T-Mobile

• Sprint

Want more off-peak hours?

T-Mobile gives you the options to begin night calling at 7pm instead of 9pm or take a 3-

day weekend of unlimited calling that also includes Fridays.

Want to keep the minutes you didn’t use this month for future use?

Cingular’s Rollover plans let you save unused minutes from one month to the next.

Want to avoid big charges if you go over your minutes allowance?

Sprint’s Fair & Flexible plans charge you $5 for every block of 100 minutes you use over

your plan’s quota of anytime minutes. That means paying as little as 5¢ per minute if you

go over, when other plans charge as much as 40

¢ per minute.

- 9 -

How are subscribers affected when wireless providers merge?

Last year Cingular bought AT&T Wireless, and this year Sprint will merge with Nextel.

When mergers occur, the terms of your existing contract stay the same, but you may not

receive newer benefits and promotions (such as Cingular’s Rollover minutes or free in-

network calling) until you sign a new contract with the provider.

Can I bring my number to a new carrier?

All cell phone users now pay a tax to be able to “port” their number to other providers.

This means that when you switch providers, you can bring your old number with you for

free. Porting your wireless number to another provider takes only a few minutes or hours,

while porting a number between landline and wireless networks may take a few days. To

make sure your number is portable, inquire with the wireless service provider you want to

switch to. Only cancel the old account after the number has been successfully ported.

If you think you’re paying a lot in taxes and fees, it’s because you are.

New Yorkers pay among the highest taxes on their cell phone service in the country. The

taxes on a $40 or $50 monthly plan amount to approximately an additional 20% in tax,

which itself is composed roughly in thirds of City, State, and Federal taxes.

Text, E-Mail and Multimedia

Phones Do A Lot More Today Than Just Let You Talk.

You can surf the web, customize your ring tone, write and receive text messages, or even

multimedia messages with pictures if your phone has a camera.

Text Messaging Keeps You Informed

Text messages let you send quick messages to other cell phone users when you can’t talk

because you’re in a meeting or a noisy place. Texting has also become very popular

among teenagers for sending quick notes (parents beware!).

 Banks can remind you when to pay your bills; Airlines can tell you what gate

your flight leaves from or if it has been delayed; E-mail providers can alert you

when you have new email.

 Free services such as What’s Up New York (whatsupnyc.com) and TxtMob

(txtmob.com) will even send you up-to-the-minute information about sales,

parties, art-gallery openings, and other events around town.

Text messages cost, like all other additional services. The cheapest way to text is to buy a

package with your monthly bill for an extra few dollars. Check the rates at your carrier.

Otherwise most carriers let you send them for 5 or 10¢

each, and receive them for free or

up to 2¢ (Verizon).

- 10 -

Are Prices at Authorized Cell Phone Retailers the

Same?

• No. There is great variance in phone prices,

phone selection, rebates, and additional

cancellation fees.

• To compensate for lower phone prices, many

dealers will have you sign a contract with the

store that binds you to additional cancellation

fees (added on to the amount you pay the

wireless provider) should you cancel service

early.

You can circumvent text-message-sending fees by emailing your friends’ cell phones

from your computer if you know their provider.

The address is their 10digitnumber@

 mobile.mycingular.com

 messaging.sprintpcs.com

 messaging.nextel.com

 mmode.com (former AT&T phones)

 tmomail.net (T-Mobile)

 vtext.com (Verizon)

Some carriers also let you customize your phone’s email address. Note that text messages

must be less than 160 characters and not all cell phones are set up to receive them.

BlackBerry and Smart phones

let you send and receive full-length

emails, as you would on a

computer. Smart phones such as

Treos are wireless personal digital

assistants (PDAs) that combine

many digital applications into your

phone that are useful for a busy

New Yorker. Services include a

scheduler, a full keyboard for

email and large screen for email

and using the net, and sometimes cameras. Extra service capabilities come with service

surcharges in addition to the cost of a normal plan. Check with your provider for the

exact charges and to find out which models of smart phones will work on its network.

What’s Next: Broadband Everywhere.

When providers activate their third generation (“3G”) networks throughout the five

boroughs, beginning with Verizon in February 2005, and other networks within the next

year, you will be able to use cell phone networks to do much more. If you have a laptop

you will be able to buy a PC Card from your carrier that will give you a broadband

internet connection wherever

you are in the City that

operates at 5 times the speed

of a computer modem.

Future phones will be able to

show TV and video

programming. Current data

networks, such as Cingular’s

EDGE network, are already

deployed nationally and run

around twice as fast as a

computer modem.

See the complete international list of provider email access addresses: http://www.notepage.net/smtp.htm

What’s the Best Kind of Store for Cell Phone

Shopping: Corporate Provider Stores or

Authorized Cell Phone Retailers?

• Wireless providers’ corporate stores have

standard prices and offerings and may be

the most direct way to deal with your

new or existing provider.

• Authorized dealers frequently offer better

deals on phones or carry a wider variety

of phones.

- 11 -

Additional Early Cancellation Fees at NYC Authorized Cell Phone Dealers

Neighborhood Fee Range Most Common Fee

Chinatown $200-400 $300

Upper East Side $0-300 $0, $300

Corona $0-300 $0, $300

Midtown/Hell’s Kitchen $70-300 $200

Jackson Heights $0-300 $200

Jamaica $0-300 $0

Washington Heights $0-300 $0

Downtown Brooklyn $0-200 $0

The Hub/South Bronx $0 $0

East New York $0 $0

Where to Shop

There seem to be more places to buy a cell phone than there are to get a coffee. In 2003,

cell phone retailers were among the three most common types of new businesses opening

in Manhattan.

Small cell phone stores generally advertise in free weeklies like the

Village Voice, while wireless service providers advertise in large daily newspapers like

the New York Post and the New York Times.

Small Authorized Cell Phone Stores

For: New Contract Sign-Up

Pros: Big discounts on expensive phones; easier to get a 1 year contract; store staff is

knowledgeable and sells plans from multiple carriers; small stores are among the first to

carry the newest phones when they come out.

Cons: Early contract termination penalties are highest (up to $600); low advertised phone

prices take rebates into account so initial purchase price may be high; prices for the same

phone may vary across neighborhoods or across the street; phones may not be covered by

warranties.

We sent researchers out to authorized dealers in 10 New York City neighborhoods

to compare cancellation penalties and find out which providers the stores recommended

(Appendix A).

• If you don’t know which wireless carrier you want before you shop, you will most

likely be sold a T-Mobile or Cingular plan if you shop at a NYC authorized

dealer. T-Mobile was recommended to our researchers most frequently (67% of

the time), and Cingular was recommended 29% of the time.

• We found that not all stores make you sign a contract that binds you to pay

additional cancellation fees to the store if you cancel early, but 28 out of the 55

we visited do. Additional penalties run from $50 to $400 and last from 4 months

to the length of your contract.

• Dealers are not forthcoming about telling you their cancellation terms and

additional fees. It’s your right to know the terms of your contract and know all the

prices of buying a new contract – so make sure you ask.

Commercial Real Estate: Manhattan: Small Stores Lead the Demand in Retailing. New York Times

11/19/03; Retail Stores Ring up More Vacancies. Crain’s New York Business 05/12/2003.

- 12 -

Looking for the World’s Most Sophisticated Phones?

• Head to Chinatown: you can get phones that have not yet been released in

corporate stores or may never be released in the United States.

Tips for Non-English Speakers:

• In ethnic neighborhoods, you can find sales people who speak your language and

phones programmed in non-standard languages.

Tips to Remember When Shopping:

• Compare prices at several

stores: our researchers

were quoted a broad range

of prices for the same

phone by authorized cell

phone dealers across the

street from each other. Pick

at least 3 stores in which to

compare phone prices.

• Your credit rating will

determine phone prices, as

well as eligibility for

discounts and rebates. If

your credit rating is low,

you may want to consider a prepaid phone. For a contract, stores may charge you

extra for a collateral deposit. Sprint’s deposits tend to be lower than competing

carriers.

• Make sure to ask about manufacturer warranties. Although you can buy

equipment replacement

insurance for a few dollars

each month, it is possible that

some authorized retailers in

NYC sell refurbished phones.

Take extra precaution and

make sure you are getting a

new phone.

Wireless service provider stores

(Cingular, T-Mobile, Verizon, Nextel,

Sprint PCS)

For: New Contract Sign-Up; Existing

Subscribers Extending or Changing

Services

Pros: Consumers can try out phones on

display with or without the aid of a

salesperson; There are many sales

associates around to answer questions

Wireless Provider Stores vs. Websites:

Providers’ websites frequently offer exclusive

instant online rebates. Closely inspect plan

terms: some providers consider voicemail and

Caller ID to be extras, but sometimes they are

available for free online.

In-Store Advantage: Some carrier websites

make it difficult to figure out how to sign up

for a 1-year contract. If you want a 1-year

contract, you’ll probably find it’s easier to get

exactly what you want at a store.

Great Places to Buy Online

Amazon: Extensive user reviews about

phones, carriers, accessories, Very low

prices, big instant rebates (sometimes up to

$50 more than other online retailers) that

give you money back when you purchase

phones. Note that rebates require you to be

active on your account for 6 months.

CNet: Professional and consumer reviews.

The site lets you easily compare phone prices

among competing retailers. Follow the

“where to buy” link to see product

availability and price (with contract).

LetsTalk.com: Comprehensive site with

Cingular, Verizon, T-Mobile, and Nextel.

Low prices are a combination of online and

carrier mail-in rebates.

- 13 -

who are knowledgeable about the details of the providers’ plans; Lowest possible penalty

price for canceling contract ($150-240 depending on the carrier).

Cons: It can be difficult to buy a 1-year contract.

Wireless service provider websites

For: New Contract Sign-Up; Existing Subscribers Extending Services

Pros: Some phones are more discounted online than in company stores; some phones are

offered online that are not available in stores at all; Some contracts are discounted online

and that are otherwise not available at a discount anywhere else including company stores

or over the phone.

Cons: No sales associate to walk you through your purchase or the fine print; can be hard

to find a 1-year contract.

Authorized Online Retailers (such as amazon.com, buy.com, letstalk.com)

For: New Contract Sign-Up

Pros: Big Discounts on expensive phones; easier to get a 1 year contract; among the first

to carry the newest phones when they come out; you can buy and compare offerings from

multiple carriers; online reviews and recommendations from users of phones and

contracts from New York and around the country.

Cons: Low advertised phone prices take rebates into account so initial purchase price

may be high; No sales associate to walk you through your purchase or the fine print.

Electronics Retailers (such as Circuit City, RadioShack)

For: New Contract Sign-Up

Pros: Ability to shop at big retailers that you trust; locations are common and convenient

Cons: As in big stores that sell many other unrelated items, sales associates may not be as

familiar with all the details of the plans as sales associates in wireless service provider

stores.

Wireless provider by phone

For: Existing Subscribers Extending Services

Pros: Redeem offers directly from your carrier to renew your contract; you may be able

to negotiate for promotions or a lower rate.

Cons: Hard to compare with options available from other carriers.

- 14 -

Getting Rid of Your Old Phone

Most people don’t know what to do with their old cell phone when they get a new one.

Disposing of your phone correctly is very important and very easy. Cell phones and

their batteries contain persistent toxins (including antimony, arsenic, beryllium,

cadmium, copper, lead, nickel, and zinc) that can be harmful when released in small

amounts, which makes it important to keep them out of incinerators and landfills.

You

can donate your phone to one of the local nonprofits listed in Appendix B, send it to a

national recycling nonprofit (listed below) who will donate the proceeds to major

charities, or drop it by any Staples store in New York City.

The following is a sampling of websites that provide information on how to donate your

old cell phone to national or local non-profits:

• RecyclingDonation.com. Benefits: United Way, the American Heart Association,

and the National Multiple Sclerosis Society.

• CharitableRecycling.com. Phones are donated to abused adults and children in

shelters so they may have access to 911. Shipping is free.

• RecycleWirelessPhones.com. Every major wireless carrier is a sponsor of

Wireless: The New Recyclable, a program to let you recycle your phone in their

corporate phone stores. If your phone cannot be refurbished (for resale), its base

materials will be recycled.

• RecycleCellPhones.com

will show your charitable organization how to raise

money by setting up cell phone recycling in your community.

To search for cell phone disposal/donation locations by zip code, visit the Cell Phone and

Computer Recycling page on Earth 911’s New York website (NewYork.earth911.org).

Filing Complaints

311 and the New York City Department of Consumer Affairs monitor dead spots in New

York City cell coverage. The Federal Communications Commission (FCC) is responsible

for ensuring that wireless service providers abide by industry regulations. All major

wireless providers discussed in this report are signatories of the Cellular

Telecommunications & Internet Association (CTIA) Consumer Code for Wireless

Service. Among its guarantees are a 14-day trial period, disclosure of rates and terms of

service at point of sale, accuracy in advertising, giving consumers the right to terminate

service if the carrier changes existing terms of service, and promptly responding to

complaints from government agencies.

If you have a complaint about coverage in the

five boroughs or about a specific wireless provider call the Public Advocate’s Office at

(212) 669-7250 or the City of New York at 311.

Waste in the Wireless World: Toxicity of Cell Phone Waste. INFORM, Inc. 11/2003.

CTIA: Consumer Code for Wireless Service, and Press Release 303-03, 10/27/03: Mayor Michael R.

Bloomberg, DoITT Commissioner Gino Menchini, and Consumer Affairs Commissioner Gretchen Dykstra

Announce Program to Track Cell Phone “Dead Spots” Citywide.

- 15 -

Other Resources and National Guides to Cell phones

New York City and State Resources

“Dead spots” in New York City reception collected from 311 (October 2004)

http://www.nyc.gov/html/doitt/html/consumer/consumer_cell.shtml

The Need for Wireless Telephone Consumer Protections: New York (June 2004)

http://research.aarp.org/consume/ny_wireless.html

National Guides

CNet Cell Phone Reviews—includes professional and user reviews

http://reviews.cnet.com/

Consumer Reports: February issue (annually)

http://www.consumerreports.org/

Washington Post’s Annual Guide to Wireless Phone Service (October 2004)

http://www.washingtonpost.com/wp-srv/technology/interactives/cellguide04/front.htm

Industry and Government Regulation

CTIA Consumer Code for Wireless Service

http://www.ctia.org/wireless_consumers/consumer_code/

Filing a Complaint with the FCC

http://www.fcc.gov/cgb/complaints.html

Political Issues and Consumer Trends in the Wireless Industry

MyWireless: America’s Wireless Voice

http://www.mywireless.org/

Public Advocate for the City of New York Disclaimer:

The Office of the Public Advocate for the City of New York makes every effort to print accurate and

reliable information. It does not guarantee or warrant that the information is complete, accurate, or up-to-

date. The Office of the Public Advocate for the City of New York assumes no responsibility for the use or

application of any printed material and assumes no responsibility for any error or omission. If you should

find errors or omissions, please inform this office at 1 Centre St, 15

floor, New York, NY 10007.

Appendix A: Early Cancellation Penalties at NYC Authorized Cell Phone Dealers

- 16 -

Store Address

Neighbor-

hood

Rec’d

Carrier

Early

Termination

Penalty

Additional

Store Early

Termination

Penalty

Net Early

Termination

Penalty

Horizon

Wireless

2855 3Av

South

Bronx

Mobile

240 0 240

Cellular-

Nextel, etc.

148th & 3Av

South

Bronx

Cingular 240 0 240

Span Am

Wireless

398 E 148

South

Bronx

Cingular 240 0 240

O. R.

Communicat

ions

2883 3Av

South

Bronx

Mobile

200 0 200

Most

Wanted

Wireless

2839 3Av

South

Bronx

Cingular 240 0 240

Wen Zhou

Eastern

Wireless

44 Bowery Chinatown

Mobile

200 400 600

Hydra

109

Lafayette

Chinatown Cingular 240 350 590

Wireless

Mall

9 Division St Chinatown

Mobile

200 300 500

Rong Ding 170 Canal St Chinatown

Mobile

200 300 500

Okashi Land

Techno Cell

163 Hester

Chinatown

Mobile

200 300 500

Ha Xong 145 Canal St Chinatown

Mobile

200 200 400

Appendix A: Early Cancellation Penalties at NYC Authorized Cell Phone Dealers

- 17 -

Store Address

Neighbor-

hood

Rec’d

Carrier

Early

Termination

Penalty

Additional

Store Early

Termination

Penalty

Net Early

Termination

Penalty

La Bamba Junction Blvd Corona

Mobile

200 300 500

Bahia

96-09

Roosevelt Av

Corona

Mobile

200 300 500

Orange

Wireless

93-09

Roosevelt Av

Corona

Mobile

200 300 500

Phone Spot

3779

Junction Blvd

Corona

Mobile

200

0 (if you

return the

phone)

200

Wireless 7

89-02

Roosevelt Av

Corona Cingular 240 0 240

ComCell

Mobile

84-18

Roosevelt Av

Corona Sprint 150 0 150

Mercury

398 Fulton

Mall

Downtown

Brooklyn

Mobile

200 200 400

Cellular

Tropics

547 Fulton

Mall

Downtown

Brooklyn

Mobile

200 100 300

Fulton

Wireless

472 Fulton

Mall

Downtown

Brooklyn

Sprint 150 0 150

Stop Cell

400 Fulton

Mall

Downtown

Brooklyn

Mobile

200 0 200

Beep 2000

435 Fulton

Mall

Downtown

Brooklyn

Mobile

200 0 200

Appendix A: Early Cancellation Penalties at NYC Authorized Cell Phone Dealers

- 18 -

Store Address

Neighbor-

hood

Rec’d

Carrier

Early

Termination

Penalty

Additional

Store Early

Termination

Penalty

Net Early

Termination

Penalty

Cellular

Blast

395 Jay St

Downtown

Brooklyn

Mobile

200 0 200

Intellifact

Services

2667 Pitkin

East New

York

Cingular 240 0 240

Latino

Records

1082 Liberty

East New

York

Mobile

200 0 200

Krishna

Bazaar

1104 Liberty

East New

York

Mobile

200 0 200

Express

Wireless

PCS

495 Grant Av

East New

York

Mobile

200 0 200

BHS

Communicat

ions

1150 Liberty

East New

York

Mobile

200 0 200

Fulton

Family Corp

3333 Fulton

East New

York

Mobile

200 0 200

Sky

Wireless of

74-13A

Roosevelt Av

Jackson

Heights

Cingular 200 300 500

Y & L

Variety

75-06

Roosevelt Av

Jackson

Heights

Cingular 240 $200 440

PC Wireless

Inc

76-09

Roosevelt Av

Jackson

Heights

Mobile

200

$200 ($0 if

you return

the phone)

200

Z-Wireless

Roosevelt Av

bet 80-81 Sts

Jackson

Heights

Cingular 200 0 200

Appendix A: Early Cancellation Penalties at NYC Authorized Cell Phone Dealers

- 19 -

Store Address

Neighbor-

hood

Rec’d

Carrier

Early

Termination

Penalty

Additional

Store Early

Termination

Penalty

Net Early

Termination

Penalty

Sun Gift

Wireless

76-10

Roosevelt Av

Jackson

Heights

Mobile

200 0 200

Cellular

Services

89-04

Sutphin Blvd

Jamaica

Mobile

200 300 500

Reliable

Wireless

90-52

Sutphin Blvd

Jamaica Cingular 240 150 390

Big Value

166-37

Jamaica Av

Jamaica

Mobile

200 100 300

NY Tele

World

Connection

148-03A

Hillside Av

Jamaica

Mobile

200 75 275

No Name

(has Vigo

sign)

Sutphin bet.

88Av +

Hillside

Jamaica

Mobile

200 0 200

Skylight

168-47

Hillside Av

Jamaica

Mobile

200 0 200

J&D

Telecom,

Inc.

850 9Av

Midtown-

West

Cingular 200 300 500

8th Ave. Gift

Store

618 8Av

Midtown-

West

Cingular 200 200 400

City Sound

Electronic

Inc

575 8Av

Midtown-

West

Cingular 200 200 400

Ustronics

Com Inc

580 8 Av

Midtown-

West

Cingular 200 200 400

Appendix A: Early Cancellation Penalties at NYC Authorized Cell Phone Dealers

- 20 -

Store Address

Neighbor-

hood

Rec’d

Carrier

Early

Termination

Penalty

Additional

Store Early

Termination

Penalty

Net Early

Termination

Penalty

9th Ave

Cellular

709 9Av

Midtown-

West

Cingular 200 70-100 200

All Ages

Wireless

1Av bet 70-

71 Sts

Upper East

Mobile

200 300 500

R.V.

Wireless

1292 1Av Upper East

Mobile

200 0 200

Wireless

Center

1392 2Av Upper East

Mobile

200 250 450

Wireless

Time

1433 1Av Upper East

Mobile

200 300 500

Home

Attractions

1400 2Av Upper East Cingular 240 0 240

No Name

4229

Broadway

Washing-

ton Heights

Mobile

200 300 500

Broadway

Plaza

Express

4179

Broadway

Washing-

ton Heights

Mobile

175 250 425

Unitech

Wireless

4153

Broadway

Washing-

ton Heights

Mobile

200 50 250

Uno

Communicat

ions

716 W 181St

Washing-

ton Heights

Mobile

200 0 200

Uno

Communicat

ions

709 W 181St

Washing-

ton Heights

Mobile

200 0 200

Appendix B: Phone Recycling Locations for Charitable Donation in New York City

- 21 -

Manhattan

Avon Foundation

(Women’s Empowerment)

Contact: Pamela Harrington

1345 Avenue of the Americas

New York, NY 10105

(212) 282-5663

Strycker’s Bay Neighborhood Council

(Affordable Housing)

Contact: Herb Rosenbloom

66 West 94th Street

New York, NY 10025

US Fund for UNICEF

(UN Children’s Fund)

Contact: Kelley Perry

333 East 38th Street

New York, NY 10016

(203) 790-9218

Lower East Side Ecology Center

c/o Kinko's

250 East Houston Street

New York, NY 10002

INFORM, Inc.

(Environmental Research)

Contact: Eve Martinez

120 Wall Street

New York, NY 10005

(212) 361-2400, ext. 229

Brooklyn

Recycle A Bicycle

(Youth Job Training Program)

Contact: Karen Overton

55 Washington Street

Brooklyn, NY 11201

(718) 858-2972

www.recycleabicycle.org

Consumer Information & Dispute

Resolution, Inc.

(Disabled & those living with

Catastrophic Illnesses)

Contact: Steven Lean

32 Court Street, #1401

Brooklyn, NY 11201

(718) 222-2437

Bronx

Soft-Word, Inc.

(Family Empowerment)

941 East 219th Street

Bronx, NY 10469

(718) 325-7936