Dial up 10 tips for lowering your cell phone bill

It's a common scene in households with teenagers. A 16-year-old in his first romantic relationship suddenly blows the limits of his family's cell phone contract. A plan with a text-message limit of 2,500 reaches 5,138 in one month.

And a bill that was typically under $80 a month now shocks an unsuspecting parent to the tune of nearly $400. The pages and pages of the bill could be a bound volume.

If it makes you feel any better, this happened to AT&T executive Mike Bennett, director of consumer and government affairs. Even though it was a couple of years ago, Bennett said that the number 5,138 will stick with him for a long time.

Bennett and other cell phone company execs have heard consumers' cries. Politicians such as State Attorney General Lori Swanson and Sen. Amy Klobuchar, D-Minn., have put added pressure on the industry about contract extensions, early-termination fees and ways to control a child's usage. Companies are adding tools to monitor or limit a child's usage and termination fees will be prorated over time.

But improvements aren't happening fast enough for many consumers. Minnesotans made 560 complaints to the Better Business Bureau between April 1, 2007, and March 31, 2008, the second-highest industry for complaints (new car dealers got the most complaints).

Only AT&T has a nationwide satisfactory record with the BBB, said Barb Grieman, vice president of the BBB of Minnesota and North Dakota. Sprint, T-Mobile and Verizon have an unsatisfactory record, based on failures to respond to complaints and unresolved complaints.

This contradicts consumer surveys conducted by Consumer Reports. In its January issue, 70 percent of the magazine's subscribers rated their experience with T-Mobile and Verizon as fairly satisfied to very satisfied. Sprint received a 63 rating and AT&T received a 59 rating. AT&T's Bennett said that the latest independent tests by Nielsen Mobile puts AT&T tied for first in overall satisfaction.

Shop around. Look beyond Verizon, AT&T, T-Mobile and Sprint's retail locations. Check the company's online deals and especially the offers at sites such as Amazon.com, Letstalk.com or Wirefly.com. Retailers may match online offers.

Negotiate a better deal with your current provider as your contract expiration nears. If you're already month to month, tell the loyalty department what you want (free phone, more minutes or more messages) after you've shopped around.

Take advantage of your free trial. Most companies have 14- to 30-day trial periods. Use the time to check coverage areas at work, home and anywhere else you'll use it often. Keep all packaging and return all items in pristine condition to avoid problems. You probably have to pay for any use, except with Verizon, which pays for all usage and even the activation fee.

Choose a prepaid phone plan. Prices have gone down, features have gone up. Watch for sales at Target and Wal-Mart on Virgin Mobile phones or at Radio Shack. T-Mobile has a plan for $100 that includes 1,000 minutes. For light usage, that's less than $9 a month.

Also consider AT&T's new Smart Limits plan. For an extra $5 a month, parents can control the numbers that a child can call or message.

If you can't switch, there is a bright side. Hard-core contracts are beginning to soften. Some companies used to extend contracts for any minor change in service. Many companies will soon be prorating the early-termination fees. The $200 or $175 fee will drop $5 each month. The change affects only renewals and new customers. Check with your provider for the date when the new policy goes into effect.

Never accept a one- or two-year contract until you know all of the monthly costs, including extra fees for exceeding limits.

Get a plan for heavy talkers, texters, browsers. Try Sprint's "Unlimited Everything" plan for $99.99 a month. Experts say only 10 to 15 percent of the market would benefit from the plan. Most should be able to find a less expensive plan. The average monthly cell phone bill is $73, according to a J.D. Power report. Check the trial period carefully. Others might want to try T-Mobile's 1,000 minutes of talk time and 1,000 text or e-mail messages for $60.

Get help finding the best plan and phone. Go to MyratePlan.com, a free shopping comparison site that chooses the best package for you based on the plan features you want. The site also rates satellite TV, credit cards and VoIP.

If your credit is poor, try latching onto someone's family plan or go the prepaid route.

Shop for cheaper ringtones. Try DJToneXpress.com, which offers the ability to make unlimited ringtones for a one-time fee of $16.95.

Sell your 'old' phone. Cell phones two years old or less have the most resale value, but most are sellable up to four years old. Check values and possibly sell your old phone (in working order) for $2 to $200 to sites such as CashOldPhone.com, Cell forCash.com, GreenPhone.com and SellYourOldPhone.com. Make sure to clear your phone's memory. For instructions, go to wirelessrecycling.com and click on "phone data eraser."