Going Mobile (Part 2): How to Get In on the Wireless Revolution -- Without Credit Checks or 2-Year Commitments

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Going Mobile (Part 2): How to Get In on the Wireless
Revolution -- Without Credit Checks or 2-Year Commitments
by Donna Schwartz Mills
< http://ld.net/?americanglo >

In Part 1 of this series, we explored reasons why some home
business owners choose wireless phones for their telephone
needs, and how to find a carrier that works for you. (See
Part 1 at
< http://www.family-content.com/articles/data/20020924130604.shtml >

In that article, we focused on standard wireless service
plans in the United States, where the customer agrees in
advance to pay for a minimum amount of airtime monthly --
for a period of one or two years. Before the customer signs
a contract, he or she is subjected to a credit check and
may be required to leave a hefty deposit to get started.

This could pose a problem for the new home-based
entrepreneur who may be strapped for cash and credit poor,
and making a one or two year commitment may not be the
wisest choice for someone in the start-up phase.

These individuals may want to check out the new prepaid
plans springing up in the U.S. Most of these are using a
model popular in Europe, which work like this:

* Customers buy a service package consisting of a
telephone and a prepaid voucher for airtime (ranging from
$10 to $25).

* Users are charged for the calls they make and receive up
to the amount of prepaid airtime.

* When a customer runs out of airtime, he or she can "top
up" the account, either by buying more time online or
over the phone with a credit card or paying cash at a
local store for another air time voucher.

This kind of service requires no credit checks or long-term
commitments; customers may quit at any time.

Most of the major U.S. wireless providers have introduced
their own versions of this kind of system and have recently
been joined by European and Australian players getting their
feet wet in the American market. In fact, industry
statistics indicate that this is the fastest growing segment
of the wireless market.

You should also note that even the large national carriers
may not be offering their prepaid plans in your area. Do
check out their websites for more information.

Here's a rundown of some of the prepaid plans currently
offered in the U.S.:

AT&T Free2Go
< http://www.attws.com/personal/prepaid/index.jhtml >

The nation's largest telecommunications company offers a
dizzying array of services, including this one. When you
purchase a Free2Go package at $99.99, you get a Nokia 3361
TDMA Digital multi-network phone, battery, charger & headset
and a voucher worth $10 in airtime.

Once again, you need to carefully analyze your calling
patterns. AT&T offers a choice of a "Home Calling Plan,"
which gives you one rate for local and long distance calls
and another rate for roaming... and a "Nationwide Calling
Plan," which gives you a higher, blanket rate (but does not
charge extra for roaming).

AT&T's pricing has an additional wrinkle in that your
per-minute rate will vary depending upon the amount of your
prepaid vouchers. If you buy just a $10 Local Plan voucher,
your airtime will cost you 50 cents per minute... but that
decreases down to 12 cents per minute with a $100 voucher.
Be sure you do the numbers very carefully before you buy!

One nice thing about AT&T's plan is that if you have an old
phone lying around that is compatible with their network,
you can just go down to one of their dealers and pick up a
Free2Go Starter Kit at no cost - all you pay for is your
airtime to get started!

BoostMobile
< http://www.boostmobile.com/home.htm >

This Australian company is currently testing its new U.S.
service in California, with plans to go national in 2003.
Their youth-oriented advertising is targeted to teenagers,
but that's no reason why their parents might not be
interested, if the service is good.

Boost offers a nice selection of Motorola phones on the
Nextel network, which means that their service also includes
Nextel's nifty Direct Connect "walkie talkie" type feature
(renamed by Boost to Boost2Way). The downside of using
Nextel's network is the coverage, which is not as wide as
some of the other major carriers. Boost's phones also
feature some nifty games (as noted above, their target
market is the teen segment).

Packages range from $99 to $399 (for a model with a color
screen - the better to play those games with).

Airtime ranges from 35 cents per minute during peak times
(Mon-Fri, 7:00 a.m - 9:00 p.m.) to 15 cents off-peak
(anytime else). Boost doesn't charge for domestic long
distance or roaming.

Cingular PrePaid
< http://www.cingular.com >

Opt for either a Nokia 3395 or an Ericsson R300z, both for
$99.99. You also get $30 in airtime credit, which is
charged at 35 cents a minute during peak hours and 10 cents
a minute off-peak. You also get a 10 minute mobile-to-mobile
rate when calling another Cingular customer.

Long distance and roaming is included, but only within your
home network. Calls to Canada and Mexico are an additional
15 cents per minute - unless you opt for Cingular's "My
Circle" plan (available to Western states customers), which
gives you a break on Mexico, Central America and other
international calling destinations.

TracFone
< http://www.tracfone.com >

This company has quietly been building itself into a leader
in the U.S. prepaid field. They offer a selection of three
different Nokia digital phones, starting at $79.99 (and
including 30 minutes of airtime).

As with AT&T, your per-minute cost will vary according to
the cost of your pre-paid voucher, ranging from 26 cents
(when you purchase the -- minute card for $79.99) to 60
cents for a $17.99 voucher (the lowest cost card). On top
of that, the lower cost cards have a shelf-life of 60 days..
which means that if you do not renew them within that time
period, your phone number will be deactivated. While that
would not happen to me or anyone *I* know (all talkers!),
if you decide to go with TracFone as your carrier, you
should look at two other card options:

The Plus3 card is good for 365 days and comes with 100
minutes. Every time you renew the card you receive an
additional 20 bonus minutes. For the same price of $94.99,
you can get TracFone's Annual card, which is also good for
one year and gives you 150 anytime minutes.

TracFone also offers a $7.95 monthly autopay program which
guarantees that your phone will never be deactivated.

Verizon FreeUp
< http://www.verizonwireless.com/ >

Verizon's current package includes a Kyocera 2135 phone and
$15 of airtime for $99.99. They also offer you 200 Bonus
Weekend Minutes every time you "ReUp" for $50, and 50 bonus
minutes when you renew for $30-$49.99.

Rates are 30 cents for weekend minutes, and 15 cents for
Mobile to Mobile and nights and weekends, as long as you
remain within their network. Domestic long distance is
included. Off network (roaming) rates are 99 cents per
minute. Cards expire in 30 to 120 days, depending upon the
amount of airtime purchased.

Virgin Mobile
< http://www.virginmobileusa.com >

Richard Branson, who may be the world's coolest
entrepreneur, has put the Virgin logo on everything from
music to soft drinks to train service and airlines. For the
last couple of years he's been building a market for mobile
telephone service with cachet - and has now brought his act
to the U.S.

Virgin is offering two prepaid packages with names like
"Party Animal" and "Supermodel." The only difference between
them are the models of Kyocera phone. They also include $10
in airtime and access to "Virgin Xtras" -- through a
partnership with VH1 and MTV, you can get music news, check
show listings and vote for favorite songs and videos right
over your phone. (This kind of cross-promotion makes sense
for a corporation that still earns quite a bit of revenue
from the music industry, and should have wide appeal to
teenagers and young adults).

Virgin Mobile is on Sprint's nationwide network, so coverage
is pretty good in the areas where the service is offered.
Rates are good too, and refreshingly simple: 25 cents a
minute for the first 10 minutes, after which it drops to
just 10 cents. This rate holds throughout the U.S. and
applies whether you've paid for a $10 voucher or a $50
voucher - it's all the same. This is one to watch.

There may be other companies currently offering prepaid
service and it is certain that others will enter the market
after the publication of this article.

The thing to remember with prepaid plans is that if you do
choose to go this route, your airtime will cost you more per
minute than if you go with a standard contract plan. It is
possible that rates could come down as the field becomes
more competitive -- but right now, if your credit is good
and you can afford a 12 to 24 month commitment, a standard
plan will be the best one for your budget.

In part 3, we'll look at some of the new phones on the
market and which features may make the most sense for you.