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| The Basics | Ditch the phone, keep the number
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After November, you won't have to stay with a carrier you dislike just to keep those 10 digits. That means wireless companies will offer great deals to keep you.
By Mark Solheim, Kiplinger's
Thinking of ditching your wireless phone company to grab a better deal? You might want to wait until the end of the year, when you'll be able to take your phone number with you. The deals may be better then, too.
Under orders from the Federal Communications Commission, the wireless industry is gearing up for "number portability," a policy designed partly to help consumers, who will benefit from increased competition, and partly to stem the drain on the pool of 10-digit phone numbers.
Wireless carriers are against it, arguing that the cost to the industry -- one estimate puts it at $2 billion to $3 billion a year -- would be better spent on improving the quality of service. But an appeals court decision in June denying an industry challenge makes the November 24 deadline a near-certainty.
Better deals on the way
To stymie the cost of implementation, carriers will likely impose a surcharge on all wireless users, not just those who switch providers. The Consumers Union reports that some, including AT&T, Sprint and Cingular Wireless, have already implemented the monthly fee, ranging from 50 cents to $1.75. However, number portability will spur better offers and a lot more cell-phone hard sell.
Without the hassle of changing numbers, more customers will switch carriers, sparking a price war, predicts Roger Entner, an analyst with the Yankee Group, in Boston. Each year, about 30% of the 145 million wireless subscribers already swap providers. The number of defectors is expected to rise to as much as 50% in the first year of number portability.
As the deadline approaches, wireless companies will try to minimize defections. Carriers will start offering deals of lower rates and more minutes if you sign a longer contract. Two- or three-year contracts will become more common. Weigh the offers carefully. Saying yes could lock you out of even better deals you may come across. And jumping ship later on won't pay. Most carriers charge $150 to $200 if you break your contract.
New pitches and packages
As companies try to increase loyalty, expect more telemarketing and mailings touting plans and perks. You'll also see pitches for package deals that bundle, say, wireless and high-speed Internet service or wireless and long-distance land-line service. BellSouth, Cingular and SBC have already announced that they'll launch a new service later this year to allow customers to share minutes for calls made from wired and wireless phones.
If you live in a rural area, you'll have to wait for number portability. The initial round affects only the 100 largest metropolitan areas.
2003 The Kiplinger Washington Editors, Inc.
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