
JANUARY
COVER STORY smart phones
search Center. Yet the experiences of the
63,000 respondents to this year’s survey
offer glimmers of improvement.
As in years past, giant Verizon and
smaller Consumer Cellular and U.S. Cellu-
lar stood out from the pack for satisfying
customers with standard service. But
there was also good news for subscribers
to the other major carriers—AT&T, Sprint,
and T-Mobile. Customers of all three who
owned phones that connect to faster 4G
networks (as does almost every phone they
now sell under contract) were consistently
more satisfied than subscribers with 3G
who remain in the cellular slow lane.
Even the long-suffering patrons of
lower- rated AT&T had something positive
to report: ey had the fewest problems—
interrupted, downgraded, slow, or no ser-
vice—with 4G service of any carrier.
Plans cost the same for 4G- capable and
3G-capable phones, but faster phones
and faster connections can lead to higher
bills. e two biggest carriers, AT&T and
Verizon, have dropped their unlimited
data plans for new customers, just as more
people are buying smart phones and 4G
networks allow you to tear through the
megabytes. For example, in a 2011 study of
185,000 phone lines by Validas, a company
that tracks cell usage and recommends
plan savings, owners of the HTC under-
bolt, an older 4G smart phone, used an
average of 1GB of data per month. at’s
almost double the 565MB average usage by
owners of iPhones, all of which accessed
only 3G networks at the time of the study.
Many smart-phone owners may be un-
aware of all the ways their usage patterns
can run up data consumption. And it’s not
only data charges driving up costs. Carri-
ers continue to swell bills with pesky
charges such as a new-phone upgrade fee
of $30 at Verizon; AT&T has pushed its own
upgrade fee from $18 to $36.
It’s little wonder that for the first half of
2012, AT&T and Verizon were crowing to
investors about profit margins of 41 and
50 percent, respectively. e latter isn’t
just a Verizon record. “It’s one of the high-
est ever recorded for wireless carriers
around the world,” says Phil Cusick, the
telecom stock analyst for J.P.Morgan.
ere are few signs that consumers
won’t pay for better phones and better ser-
vice, but we offer ways to save—and be
more satisfied, too—no matter what
phone and plan you choose.
1 Phones get smarter
Although they’ve achieved a high stan-
dard, smart phones vary in performance
and price, even among the recommended
models in the Ratings.
Displays get better and bigger. Within
the past year, more phones have sharper
displays, with 720p resolution and higher
pixel counts per inch. ey’re also more
accurate with colors and easier to read in
bright light. And typical screen size is edg-
ing up, with a norm of at least 4.3 inches
for our recommended models.
Two new phones exemplify how manu-
facturers are making the extra real estate of
the biggest screens work better for the user:
the Samsung Galaxy Note II, whose
5.5-inch display is the new size champion
among phones, and the LG Intuition, a
5-incher. Both let you write with a finger or
stylus on top of photos, calendar appoint-
ments, e-mail messages, or other displayed
content and share the content and note as
an image via e-mail, messaging, or social
networks. In portrait mode, phones also al-
low you to shrink the keyboard and slide it
to either side of the screen to help smaller
thumbs reach the farthest keys.
Cameras improve. Despite having
much tinier lenses and image sensors, the
best smart-phone cameras challenge sub-
compact cameras and compact camcorders
in image quality. at said, smart-phone
cameras have limits. eir performance in
low light is generally worse than that of
stand-alone cameras, and they have a
slower maximum frame rate than cam-
corders (30 frames per second vs. 60 fps),
resulting in less fluidity in video images.
And so far no smart phone offers optical
zoom-lens capability, although rising res-
olution (8 megapixels or more on many
phones) should limit the degradation in
quality as images are enlarged.
More smart phones, fewer exclusives.
e basic cell phone isn’t dead, but its
smart sibling is edging it out. e major
carriers now offer only a handful of basic
phones, most of them sold by their pre-
paid subsidiaries or partners. And many
basic models sold with contracts cost al-
most as much as an entry-level smart
phone. Six of 10 basic phones from Veri-
zon, for example, cost $80 or more with a
two-year contract.
When to get a new smart phone
It might seem unnecessary to replace
a working smart phone at the end of the
customary month contract period for
most plans. But two factors make it smart
to consider spending or so to get a
new phone when you’re eligible to do so:
You’ll pay for a new one, anyway.
Unless you opt to switch to a prepaid plan
once your contract obligations are fulfilled
see “Which Phone & Plan?” on page ,
your monthly bill will probably continue
at the same cost as before. That bill will
include the amount the carrier sets aside
to repay itself the difference usually at
least between what you paid for
the smart phone and what the carrier
paid the manufacturer for it.
In other words, after your contract is up,
you’ll essentially be paying toward a new
phone whether you get one or not. So why
not get something for your money?
Your old phone will show its age.
Operating systems and apps are designed
and updated for the newest smart phones,
with their faster processors, expanded
memory, larger and sharper displays,
improved cameras, and more. Accepting
overtheair updates to your operating
system and apps when prompted to do so
helps stave off obsolescence, and deleting
apps you no longer use helps. But within
a few years, your phone could struggle to
muster the processing power, memory, or
features it needs to make the most of new
apps or an upgraded operating systemif
it can accept them at all.
AT&T, Sprint, and
T-Mobile 4G users
were happier
than 3G users.
1 DID YOU kNOW?
You can sell your old phone privately on
Craigslist or eBay or to a company such as
Gazelle, which in November was offering
for a GB iPhone S, for example. Some phone
manufacturers have tradein programs. You
could donate it to an organization such as
Recycling for Charities or give it to someone.
Make sure you delete personal data. Or simply
keep the phone in case you lose or damage
a new one and don’t want to replace it until
your contract expires and you’re eligible for
a new discounted phone.
Sell, trade, or recycle
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