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

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

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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.

About the Author

Donna Schwartz Mills writes about the specific needs of work

at home parents at her website, The ParentPreneur Club,

"For Parents Who Want Choices, Not Office Politics." Tools,

tips and advice you need to help grow your home based

business while raising a family.

< http://www.parentpreneurclub.com >