Switching cell phone providers has long been one of the easiest ways for consumers to save money on cell phone service and get a new phone at the lowest price. However, new pricing models and an increase in online shopping competition have opened up new ways to save money, without changing.
Consumers often complain that cell phone providers don’t appreciate current customers. All major wireless carriers offer free or reduced-price phones for “new customers only.” These offers require new customers to sign a contract, usually for two or more years. Existing customers often feel left out.
In the past, customers stayed with their providers out of convenience and loyalty. An important factor was the ability to keep the same phone number. However, wireless number portability was introduced in 2003. This allowed consumers to switch providers and keep the same phone number.
When wireless number portability came into play, more cell phone customers started switching providers to find the best deal. Since there are so many providers with extensive coverage and customers can keep the same phone number, there is little incentive to stick around.
However, many carriers, including Verizon Wireless and AT&T Cingular, have become more aggressive in offering incentives to keep current customers. For example, Verizon now offers a “New Every 2” policy for existing customers. Existing customers can choose from many free phones after completing a two-year contract. This allows them to save $100 or more over previous “upgrade” prices.
Cingular Wireless, now part of “the new AT&T,” also offers aggressive pricing structures. Many of the phones offered free to new customers are now available to current customers who extend their contracts for two years.
Online wireless affiliates and authorized retailers have long offered lower prices than those offered directly by providers. This allows customers to save even more money. Cingular is one of the few major carriers that allows online wireless stores and their affiliates to offer phone upgrades. At the time of this writing, only Sprint and Cingular offer phone upgrades on popular cell phone websites. Existing customers can request an upgrade from Cingular on many websites and usually get a free phone offer.
Before you ditch your current cell phone provider for your competitor’s free phone, do some research. Ask your current provider what special deals they can offer, but don’t stop there. Before you change or pay a higher price, you should do a search on the Internet. Chances are you’ll find a reliable wireless agent with the price you want.