Consumer United launches online wireless store

Consumer United, an online membership-driven consumer group that offers savings on basic services such as heating oil and home insurance, has teamed up with Simplexity, the Internet’s leading authorized retailer of cellphones and service plans, and launched Consumer United Wireless, a new online store for cellphones, services and accessories.

Built and managed by Simplexity, this new one-stop shopping destination here features hundreds of the latest wireless devices, including BlackBerry and Android-powered smartphones.

Consumer United Wireless features exclusive online savings on wireless devices -up to hundreds of dollars less than retail stores--from top handset manufacturers including BlackBerry, HTC, LG, Motorola and Samsung and every major U.S. carrier.

Now, members have the convenience and opportunity to research, compare and shop for cellphones on a new optimized website from the comfort of their own home. They can quickly and easily explore the extensive catalog of cell phones and view unbiased information on the latest Android-powered smartphones, BlackBerry devices and PDAs from every major U.S carrier.

Utilizing Simplexity’s fully integrated e-commerce platform, Consumer United members can quickly and easily shop for the latest cellphones either by manufacturer, service provider or rate plan. They also have the ability to upgrade their current phones, transfer service-and phone numbers- to new carriers, or add new lines to an existing family plan.

It's a good time for members to buy or renew your cellphone or wireless plan through Consumer United. Start shopping here and take advantage of huge savings, convenience and greater selections.

Click here for Consumer United Wireless.

Survey finds cellphone service less than stellar

A survey conducted by Consumer Reports for its January 2010 issue finds that despite "smarter phones," more flexible plans and faster wireless networks, cellphone service continues to be among the lower-rated of all the services the watchdog group evaluates.

Responses from more than 50,000 readers based in 26 U.S. cities showed that two-thirds of respondents had at least one major complaint with one in five readers citing high prices as their top concern.

"America is in love with the cellphone, but they are lukewarm about cellphone service," says Paul Reynolds, electronics editor at Consumer Reports. "They're especially concerned about its cost in these tight economic times."

The survey ranks Verizon as consumers' favorite wireless carrier, applauding the service provider for its customer service, voice connectivity and network reach. However, respondents had issue with Verizon's high cost.

On the other hand, T-Mobile ranked second in the report for its cost-efficient value but had less-than-stellar marks for messaging, web and e-mail services. Sprint and AT&T tied for the bottom slot scoring low in customer service and voice connectivity respectively.

More than one-fourth of respondents say they opted for a service provider based on the carrier for a specific phone, with Apple iPhone leading the way winning over a staggering 98 percent adding that they would buy the phone again despite the below-par ratings for its exclusive service carrier AT&T.

The survey explores the buzz surrounding prepaid phones revealing that the non-contract option is actually cheaper than traditional cellphone service billed on a monthly basis. For example, prepaid phones often costs $25 or less per month compared to $50 to $100 carrier fees for contract customers.

Out of those surveyed with prepaid phones, TracFone scored the highest in customer satisfaction with T-Mobile, Verizon and Virgin Mobile not far behind.

Looking for a cost-efficient prepaid phone? Consumer United has teamed up with TracFone's Straight Talk service which offers unlimited talk and text for only $45 a month or $30 for 1000 minutes/texts, 30 MB (about 300 pages) of mobile web access and free 411 calls.

Click here to learn more.

Additional tips to save on cellphone bills

Wireless service providers make their money when customers decide to sign a long-term contract for far more minutes and services than you are likely to need.

You can often only get out of this agreement by paying an expensive cancellation fee. If you're shopping around for a new service or considering re-signing your contract, think about switching to a prepaid plan. By avoiding the commitment of a two-year plan, you have the option of signing up for a more limited plan then expanding your services if you find you need to do so. You can ignore the high-pressure sales tactics that cost customers a lot when they know they're making a decision that could follow them for two years.

Don't be afraid to buy a bundle of what you actually use, however, because a la carte minutes, messages, and megabytes can be very costly. Most carriers charge only $3-$5 for a few hundred extra text messages that could cost as much as $0.20 each if you had to buy them individually. If you think you need to purchase add-ons for more than one service, you may want to consider upgrading your plan. Some unlimited prepaid plans offered by Boost or MetroPCS have the potential to save seriously talkers a significant amount of money each month.

Another easy way to cut your monthly bill is to find out whether you're paying for costly handset or other insurance. Customers sometimes agree to pay for this insurance when they first sign their contracts and it seems like a good idea to protect the phone they have just purchased. After a few months, previously owned versions of the very same phones tend to be available at a low cost. If you save your old phone as a backup, cancel the insurance and save the difference, you should be well prepared in the event of an accident.

--Bridget O'Sullivan

Survey says prepaid phones are gaining popularity

The weakened economy is causing many Americans to take a hard look at their budgets, and a recently released survey by the New Millennium Research Council suggests that their monthly cellphone bill is one of the primary expenses people are trying to reduce. Over 60 million consumers are likely to eliminate some of their cell phones services and features if the economy continues to worsen, according to the survey of about 2,000 respondents.

In the last six months, about 15 percent of those polled have decided to eliminate extras such as internet connectivity and text messaging. An additional 40 percent of respondents who currently have these features replied that it is somewhat or very likely that they would get rid of these extras if the economy continued to decline.

Allen Hepner, a scholar with New Millennium Research Council, said in a statement that “The era of cell phone penny pinching is officially here. Thanks to the recession, the U.S. cell phone marketplace is undergoing fundamental changes that will just get bigger as the economic downturn deepens. What we see in these survey findings is clear evidence that most consumers will keep a cell phone during this recession, but only after shifting to less expensive cell phone plans, such as prepaid, and also by scaling back on cell phone extras...”

Prepaid plans have become more popular with consumers who are trying to cut costs because they require very little commitment which is often attractive when finances are uncertain. Over sixty percent of respondents with prepaid phones believe they are saving money compared to what they were paying for a contract-based or land line plan. The Telecommunications Research & Action Center, a non-profit education and advocacy organization, has also recently emphasized that many consumers could reduce their monthly bills by switching to prepaid phone service.

Click here for more information.

--Bridget O'Sullivan

Prepaid cellphone plans gain popularity

Many consumers are looking to cut as many expenses as possible out of their budgets, and the long-term cellphone contract seems to be the next casualty. Once the plan of choice for shifty characters who wanted to change their phone numbers frequently, prepaid options are rapidly gaining popularity with frugal shoppers.

Providers are also offering a variety of choices that make prepaid plans more attractive to consumers. Some plans allow customers to buy one-time-use cards in increments of $25 or $50 dollars, for example, and the balance is debited as calls are made or text messages are sent.

Other plans resemble the more traditional long-term contracts. Customers pay a monthly fee for a predetermined service plan, but they pay up front and the agreement is only month to month.

As the popularity of these services has increased, so too has the selection of phones and other hardware that accompany the prepaid plans. A major difference between choosing a long-term contract and a prepaid plan is that prepaid customers often have to pay for the phones themselves. To entice customers to sign on often for several years at a time, providers have traditionally offered phones for free. Over time, however, a prepaid plan plus the purchase price of a phone could still be more cost-effective than a long-term contract.

Prepaid contracts may also be a welcome vehicle for growth for the wireless industry. According to CTIA, a wireless trade group representing wireless communication providers, wireless penetration reached 85% in the United States as of June 2008.

Additionally, The New York Times reports that over half of the customers T-Mobile added in the fourth quarter of 2008 were prepaid customers. In some metropolitan areas such as Boston, providers such as MetroPCS are entering the market offering only prepaid plans.

--Bridget O'Sullivan