Mobile Rate plans - Promotions

Promotions
Wireless carriers regularly set aside funds to offer promotional deals to their customers. Promotions are designed to drum up new business for the carrier and are only for new customers, not existing customers. (Loyalty is rarely rewarded in the telecommunications industry.) If a new customer activates a phone with the carrier, she qualifies for the promotion. Promotions may include the following offers:

Free night and weekend calling for a year;

A free phone;

A free battery;

Free merchandise or gift certificates;

Extra airtime minutes each month.

Promotions are usually advertised on the Internet, on radio, and in newspapers, but you can normally find the latest promotions by calling customer service. If you are an existing customer, you can still request the promotion. Corporate accounts rarely qualify for consumer promotions, but the corporate account executive may be able to pull some strings because the purpose is to retain the corporate account and develop more business from it. Many account executives are skilled in securing preferential treatment for their corporate customers.

Upgrading from analog to digital
In the early days of wireless phones, everyone used analog phones. In the late 1990s, customers began migrating to digital wireless service. Around 2000, the number of digital users equaled the number of analog users, with about 45 million of each type. The two main reasons for this trend are that digital service is higher quality and is more affordable. When digital service was first made available to the public, carriers offered very attractive pricing. The carriers had invested in building their digital networks and were eager to build their customer base.

The downside of switching from analog to digital is that you must buy a new digital phone, your coverage area may be different, and you may have to get a new phone number.

For some wireless users, digital service is not the best option. Carriers offering analog service are still hungry for business and still offer competitive pricing. Of course, the rate plans vary from market to market, but especially in smaller, nonurban areas, analog service rate plans are usually the best. In these smaller markets, digital wireless service only has limited coverage, so a customer’s analog phone might be more useful.

Mobile Rate plans - Why is it so hard to change rate plans?

Why is it so hard to change rate plans?
Analysts and marketers design rate plans, which are then passed on to customer service and the billing department. By the time consumers become aware of the latest rate plans, the analysts are already drafting even newer plans. Consequently, customer service representatives often have outdated information about their own rate plans.

The primary job of a customer service representative is to keep busy talking to customers on the phone, rather than to study the employer’s latest service offering. Customers can often get rate plans on the Internet days before customer service representatives are even aware of the new plans. Sometimes, representatives offer a rate plan that they cannot implement because the plan is either too new and not yet available or too old and no longer offered.

When they try to enter the change, their computer rejects it because the plan is not available. Instead, they arbitrarily choose a different rate plan for you. Consider yourself lucky if they call you back to tell you what happened. Otherwise, you will just have to see it on your next invoice—if you examine it.

Changing the rate plan on a cell phone seems like an easy task, but many things can go wrong. Human error or computer error can ruin the change. A simple typographical error will cause the wrong rate plan to be implemented and can cost you hundreds of dollars. What is intended to save a little money each month may actually raise your cost and waste a lot of your time.

How to ensure you have the best rate plan
I have used the following steps to reduce wireless phone bills hundreds of times for businesses throughout North America.

Get your historic average. Look at your last 3 to 6 months’ phone bills and determine your average amount of usage each month. Write down the amount of home airtime, roaming, and long distance. If your bills are unavailable, your carrier can provide this information.

Learn the newest rate plans. Consult the Internet or your customer service representative to learn the new rate plans. Sometimes, your actual cell phone bill may have a notice that lists some of the new plans. You may also see them advertised in your newspaper. It is also possible to compare rate plans side-by-side on the Internet (see Figure 1).


Figure 1: Side-by-side rate plan comparison on the Internet.

Do the math. The customer service representative will recommend the rate plan that is the most cost effective for you. His computers will do the calculations automatically. Always double-check the math, however, because the representative may have done the analysis on his own. Sometimes representatives accidentally recommend the wrong plan.

Change the rate plan. Ask the representative to change your account to the new plan. Make note of the representative’s name and phone number. If the order fails to process, you are more likely to get a refund credit if you can prove that you did actually speak to a company employee. Have the representative fax or e-mail written confirmation to you that the order has been completed.

Confirm the change. After 2 to 3 days, call the carrier and ask for confirmation that your account has been changed to the new rate plan. Try to speak with a new representative who will objectively review your account. Avoid telling the company what plan should be in place; instead, have the representative first tell you what rate plan is in place. This is the most effective way to confirm the change.