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Calling all WHAT a difference a few years and added competition make. Four years ago an Oahu consumer would spend $40 a month to get 100 minutes of air time on a wireless phone. That wouldn't include long distance calls.
cell plans
For isle wireless users,
competition can be beneficial
but confusingBy Rob Perez
Star-BulletinToday consumers can buy at least four times the minutes -- and much more when promotions are included -- for that same $40. One current calling plan, for instance, offers 2,600 minutes (2,000 of which cover weekend calling). Long distance is included.
Consumers clearly have come out ahead as Oahu's wireless phone companies continue battling for customers in one of the more heavily penetrated markets in the country.
One need look no farther than the relentless advertising campaigns touting the latest specials and the newest gizmos. Deals abound.
But for all the changes that have swept the industry, one thing has remained constant: consumers still face a dizzying array of choices. Given the many differences among the various plans offered by Oahu's six main carriers, trying to comparison shop often becomes an exercise in confusion."It can be overwhelming," said Karen Busekrus, office manager for a local architecture firm. Busekrus and her husband, John, have used at least three different carriers over the past several years. When their contract with a given provider is about to expire, she said, they scan the ads and ask questions before deciding which plan to take.
"It's always the little stuff that's not mentioned" that makes comparison shopping difficult, Busekrus said.
In some respects, though, consumers have it easier than in the past. Even though there are twice as many carriers on Oahu as five years ago, offering many more plans, information about the plans is readily accessible.
The six main carriers on Oahu -- AT&T Wireless, Hawaiian Wireless, Nextel Partners, Sprint PCS, Verizon Wireless and VoiceStream Wireless -- have individual Web sites, detailing rates and helping consumers with the selection process. (Nextel's local offerings, however, differ slightly from what is shown on its national site.)
And at least one Web site, getconnected.com, provides a basic comparison of many of the competing plans available on Oahu. (The site includes the offerings of the national and regional players here but not Hawaiian Wireless, the only locally owned one.)
Still, navigating the maze of choices can be so daunting for some consumers that one company hopes to capitalize on the confusion.
Wireless Hunter is scheduled to launch a Web service next month that is designed to help consumers sift through the offerings and choose the best plans for their specific needs, according to Brent MacNab, the company's general manager.
For $10, a consumer will be able to tap into Wireless Hunter's Web site to answer basic questions about his or her calling patterns. Based on that information, the site will then list the three best plans available for that consumer, said MacNab, a former product manager for a wireless carrier.
MacNab said many Oahu consumers purchase plans in which big chunks of "free" minutes go unused -- or the allotted minutes are regularly exceeded. In either case, he said, the consumer pays more than necessary.
"I can say from working in the industry that that's a very significant factor," MacNab said.
Others say consumers can get caught up in the advertising hype, buying technology or calling packages that they don't necessarily need.
"The marketing going on is incredibly good," said Joseph Donaldson, sales manager at Hawaiian Wireless.
By shopping smartly, callers potentially can save lots of money, advocates say.
Marcie Sullivan, spokeswoman for Rockville, Md.-based TeleBright Corp., which has teamed with Consumer Reports to provide online price comparisons for wireless service, said consumers should re-evaluate their calling plans every year.
The industry is changing so rapidly and promotions are being launched so frequently that consumers can reap considerable benefits by doing annual evaluations, especially if their calling patterns change, Sullivan said.
"A year ago your plan could've been the absolute best for you," she said. "But today it could be the worst."
A January survey by Econ One Research Inc., a Los Angeles-based company, underscores just how much Honolulu residents can benefit from shopping around.
Someone who uses 300 minutes of calling time, for instance, paid only $39.99 with VoiceStream but $52.91 with Sprint PCS, a 32 percent difference, according to the Econ One survey of four carriers.
At 600 minutes, the difference was even greater. VoiceStream still was the lowest at $39.99, but Verizon charged $77.07, Econ One said.
To see a large version of this chart, click the image or here.
Such surveys can be misleading because they typically don't account for major differences in plan features, company representatives say.One package may offer free weekend calls, while another has free night calling, they say. Or one plan may have free long distance and a competing plan may not, even though they are similarly priced.
Moreover, survey results can be skewed because of differences in the way companies tier pricing, the companies said.
"I've yet to see a survey that can really give a true apples-to-apples comparison," said Eric Kaneshiro, marketing and sales manager for Sprint PCS in Hawaii. The key to finding the best plan, Kaneshiro and others said, is to decide what kind of services and quality you want and compare what the carriers offer.
Once you know how you're going to use the phone -- will there be frequent daytime calls, for instance? -- finding the right plan isn't too difficult, said Sherrie Coronas, local advertising manager for Verizon Wireless.
The companies say they offer different packages to serve customers with different needs. Some plans are best for people who make mainly local calls. Some are designed for customers who frequently use their phones on the West Coast. Some are designed for people who travel all over the country. Some are mainly for emergency use.
"What we've found is one size does not fit all," said Gil Mendelson, general manager and vice president for AT&T Wireless in Hawaii.
Even though consumers are getting more for their dollar, especially with rapid improvements in technology, not everyone is happy with the service.
Only about half the 1,500 cell-phone users surveyed nationwide by Consumer Reports last fall said they were completely or very satisfied with their plan, according to the current issue of the magazine. That was among the lowest scores for consumer services the magazine tracks, comparable to ratings for trial lawyers and airlines, the report noted.
Several industry officials here said Hawaii's market probably would produce similar results. Carriers everywhere deal with issues such as "dropped" calls or dead spots in their networks, and Hawaii is no different, the officials said.
To keep customers happy, the companies say they constantly focus on improving customer service, including offering new features.
Two-way text messaging and Web browsing on wireless phones are among the more recent offerings.
Demand for such data-sending services is surging, says AT&T's Mendelson.
But as the carriers offer more features, customers should be especially diligent in regularly evaluating their wireless plans, making sure the plans still fit their needs, consumer advocates say.
"The market's really exploding, so there's a lot of consumer education that needs to be done," said TeleBright's Sullivan.
Picking a plan
How do you plan to use the phone? That's the most important factor when selecting a wireless carrier. If you expect to use the phone almost exclusively for local calls, for instance, don't pick a plan designed for lots of long-distance usage. What to consider:
Roughly how many minutes do you expect to use the phone each month?
Time to switch?
Consumers should consider changing calling plans if they:
Source: Star-Bulletin research
