What Kind of Cell Phone Plan Do You Need?

By Damon Brown

The right mobile phone service will save you money, increase productivity, and keep your employees happy, too.

Choosing the right cell phone plan is as important, if not more important, than choosing the right cell phone. Dollar-per-minute overages, a lax assortment of features, and inadequate network coverage can cost your business hundreds of dollars. That cost gets multiplied by the number of phones your staff requires.

The 200 million cell phone subscribers in the U.S. last year spent a total of $113 billion on service, according to the Cellular Telephone Industry Association. But the use of wireless services by U.S. businesses -- which have expanded to data, e-mail and Web browsing -- led to an estimated $15 billion in productivity gains by companies, a 2006 CTIA report says.

Since cell phone service can help companies be more productive by allowing traveling employees to make calls -- or send e-mail -- from the road or from home, it's vital to select a calling plan that best suits your business needs. In order to figure out what type of service is best for your company, consider some basic questions about your business before signing up:

How many phones do we need?

All major carriers -- including Verizon, T-Mobile, Sprint Nextel, etc. -- offer business plans geared towards multiple phones, which include three-way talking and other bonus features. Not all of them support unlimited off-peak minutes (traditionally from 9 p.m. to 6 a.m.), although they can offer discounts based on the number of phones.

If only a few phones are needed, consider doing a (sometimes cheaper) family plan for your business. Family plans simply encompass two or more cell phones. The base plan will cost a few dollars more than a single phone setup, but adding additional phones as your business expands is an easy and inexpensive process. Be aware that some plans require that every member get the same type of phone.

Another alternative method is the so-called "circle" option, which allows you to put certain people -- maybe your employees or top clients -- in your calling circle and call them for little-to-no charge. It requires that they have the same carrier.

Will most business be done during the day, night or weekends?

This is perhaps the most crucial decision in choosing the right cell phone plan. All carriers give a baseline of minutes per month, sometimes called a "bucket," that can be used anytime. There are generally two types of plans: anytime plans and anytime plans with bonus minutes.

• Anytime plans: With this setup you receive X amount of minutes per month (usually in the thousands).
• Anytime plans with nights and weekends: You get the standard minutes per month along with free minutes, usually offered every evening and weekend. Evening call time traditionally lasts from 9 p.m. to 6 a.m., with weekends marked from 9 p.m. Friday to 6 a.m. Monday. Non-bonus plans tend to have more anytime minutes, but bonus minutes can be a money-saver if most of your calls are done during off-peak times.

Who will pay for incoming calls?

The majority of pricing plans require businesses to pay for both outgoing and incoming calls. That's true also in the case of "bucket" plans. When you pay for minutes per month in one lump amount, or bucket, the minutes are usually withdrawn for both outgoing and incoming calls, according to the U.S. Federal Communications Commission. However, some carriers are starting to offer new pricing plans where all or some of the minutes for incoming calls are free to the phone subscriber.

Will our monthly talking time fluctuate?

Basic cell phone plans are usually less than $50 per month, and those can cover 100 minutes or more of speaking time. But go over your allotted monthly time and the minutes are prices at an a la carte rate -- usually a pricey $.50 a minute or more. On the other hand, basic plans do not pro-rate your minutes per month, so you're not going to get paid back for unused time at the end of the cycle. If you expect to have wide fluctuations in use, consider a "rollover"; plan that allows you to carry unused minutes into the next pay cycle. Cingular is known for this type of service. But other, smaller carriers are starting to add it as well.

Will my employees be traveling around the country?

Most carriers divide their services into regional plans and national plans. Regional plans cover radius near your business, including several miles. National plans cover several regional areas throughout the country. Making calls outside of your designated area(s) is called "roaming," an action that will cause your per-minute-fee to jump considerably. "[With national plans] roaming and long-distance charges effectively go away [and are] replaced by a single, predictable flat rate," according to Wireless Guide, an organization that compares offerings of different calling plans. "Nationwide calling plans are a good value for heavy users who are frequent travelers."

Will my employees be traveling around the world?

Every major carrier has international plans that give discounted rates for calls to and from foreign countries. This is often an addition to your traditional plan. Carrier rates vary from country to country, so be sure to ask about a specific area's fees if you favor a particular country.

According to The Travel Insider, a website for business travelers, it may just be easier to have employees rent a phone when traveling abroad. "Renting a phone is a sensible option if you travel very infrequently, and have no special 'power user' type needs," the site says. "However, if you expect to be renting a phone several times over a couple of years, it is popular cheaper and better to purchase a phone."