In my experience, most of the people I've spoken with go into this task of choosing a carrier and handset in what I feel is the wrong way. Backwards, if you will. Stacy says "I'd like an iPhone" or "That Motorola Atrix looks pretty sweet" and then researches what carrier carries that particular handset. This is dangerous, as you might get sucked into a plan that you don't need with a carrier that you don't like all because someone waved a shiny thing in front of you. Start by shopping for a carrier. Even if the carrier you decide on does not offer the exact phone you want, it's extremely likely that they offer one similar, if not identical. You see, original equipment manufacturers (OEM), often make similar or nearly identical phones for multiple carriers. In some cases, the only difference is the body in which the hardware is housed. The Samsung Nexus S with Google is available on both T-Mobile and Sprint. The only difference is that Sprint's model is compatible with their WiMAX (Sprint's name for 4G) network, and T-Mobile's is only 3G. Otherwise, the phones are identical. With that in mind, choose a carrier first, then a handset. Don't let the carrier pull the wool over your eyes with words like "exclusively" or "only on". True, T-Mobile is the only carrier with a phone called the "T-Mobile G2x with Google from LG", but LG makes nearly identical phones with slightly different names for other carriers.
I suggest following the below pattern in order from greatest consideration to least consideration.
The Big Four
Nationwide vs Local
The first question you should ask yourself is "Who covers my area?" Do you live in a big city? Do you live in the suburbs? Maybe you're out in the country. Either way, you can limit the amount of time you spend researching various plans by narrowing your search down to just who covers your area. Don't just consider your home. Do they cover your work? Places you visit often such as the supermarket. Travel destinations you frequent such as the town you grew up in or your extended family's home. You'd be surprised to discover that your carrier might offer 4G at your house but not at the house three addresses north of you.
The Big Four, made up of AT&T, Verizon Wireless, Sprint, and T-Mobile, are almost always available, in some capacity, in highly populated areas. Here in Memphis, TN, all the Big Four are available, and all of the Big Four advertise data speeds of 4G, except for Sprint. There are also a number of local carriers. Local carriers have a presence in most highly populated areas, and are sometimes the only option in low traffic areas, as the Big Four often do not find it worth the capital to invest in more rural areas.
If you live in Sleepy Eye, Minnesota, you may only have one or two of the Big Four and then a smattering a local carriers. If you live in Los Angeles, chances are all of the Big Four and a few local carriers cover you.
Second, ask yourself "What do I want to do with my service?" These days, most everyone has a variety of low end cell phones (voice and text only), mid-range feature phones (voice, text, and limited web such as e-mail and maybe a twitter app), and high-end smart phones (voice, text, the full web, and expandable features through downloadable apps), so this isn't usually an issue. But, some very small markets with only a local carrier available may only offer voice.
Contract vs No Contract vs Pay-As-You-Go
The Big Four and almost every local carrier offer some version of each of these three options.
Contract
Contracts lock you into a set price (as long as you do not exceed the limits set by the contract) for your service (meaning that the carrier will not raise your rate for the duration of the contract), give you a discount on the phone of your choice (sometimes this means the phone is free), and are usually for two or more years. Contracts are appealing to consumers because it often makes an otherwise too expensive phone affordable. A brand new iPhone before the discount is around $500 or more. After you sign that contract, AT&T or Verizon will sell you one for about $200. There is usually a period of time that must pass before you qualify for a phone upgrade, and if you choose to use that upgrade, you will have to renew your contract, even if your current one is still active.
No Contract
As far as I know, this is pretty unique to T-Mobile. Of course, you can get a no contract plan on other carriers, but most of those fall into the Pay-As-You-Go category. T-Mobile offers it's customers a no contract plan that does not come with a phone discount, but the plan itself is less expensive than the contract plan. Also, the price of the phone is then pro-rated over 18 months as long as you make a down payment, which varies depending on the price of the phone.. On a contract plan, your phone of choice may be discounted to $200, but that is due up front and may also be including mail in rebates, meaning you might have to pay $275 up front and then mail in a rebate for $75.
In my personal experience, I saved $20 over the course of two years by paying full price for mine and my wife's phones and not signing a contract vs signing a contract and taking the discount. Also, becuase I'm on a no contract plan, at any time (say, the day AT&T absorbs T-Mobile) I can walk away from my service without paying an early termination fee.
Pay-As-You-Go
If you're bad with managing your money, this may be the way to go, though it's often much more expensive for those who use their phones a lot. If you use your phone rarely, this is the way to go. These plans enable you to purchase time in advance and in chunks as you need them. Prices vary greatly, and the handsets are usually pretty limited in functionality. But, if you haven't got $50 a month for a more traditional plan and you only talk to your mom on the weekends, this will probably fit you just fine and be less expensive. Heavy users should avoid these.
Voice, Text, and Data
Voice: This your what you use to make phone calls over your carrier's cellular network. Most carriers offer a range of limited minutes to unlimited plans. If you use your phone to make calls for work or as your primary phone (i.e. you do not have a land line), you're likely going to burn these pretty quickly. If you use it strictly for personal use or as a secondary phone to compliment your land line, a limited plan will probably be just fine. My wife and I share 750 minutes. We've gone over twice. Once the month we lost a family member, the other the month of our wedding. The rest of our time with that plan (5 years) we've never come close to using all of them.
AT&T offers roll over for unused minutes if your on a limited voice plan. If you pay for 500 a month, and only use 425 one month, the remaining 75 are still available on top of your 500 minutes the following month. Other carriers are use them or lose them.
Some carriers offer Wi-Fi calling on compatible handsets. This means that, if you're in range of wireless network with internet, your phone can access the voice network via Wi-Fi. This reduces traffic on the cellular network and often times does not count against your minutes. Each carrier is different and may not offer free Wi-Fi calling.
NOTE: The Big Four and most local carriers offer unlimited minutes at 9PM-6AM local time (7PM-6AM for Sprint customers) and all day on Saturday and Sunday. This is included no matter what voice plan you choose. The Big Four and most local carriers also offer free mobile to mobile, which means that I can call any T-Mobile customer and it will not count against my minutes.
Text: Text messaging plans are offered in the same manner that voice plans are. You can purchase a limited number of text messages (which or may or may not include video or picture messaging, which is basically a text message that contains a video or picture file) or unlimited. You can also just pay per text, which range from 5-10 cents a text, depending your carrier. Most carriers offer unlimited text for $5-$10. At that price, it makes more sense to either pay for unlimited or have it disabled.
NOTE: If you choose a limited text plan, your are penalized one text for every text you send AND RECEIVE! This means that if you have a teenage sister who likes to text and only text, you should probably get an unlimited plan. Every text you go over your limit will cost between 5-10 cents per text even if the overage is caused by a text happy friend. Also, some carriers count emails, tweets, and other similar types of massages against your text count.
Data: Data plans vary greatly form carrier to carrier, so I need to break it down as such.
Limited: AT&T and Verizon both offer only limited data plans. These plans vary in price and amount of data allotted. According to both carriers, it''s extremely unusual for data users to exceed 2gb (gigabyte) of data. Both carriers advertise that this method allows it's users to select how little data they think they need and save money. However, exceeding your limit often includes hefty fines, some as large as $30.
Unlimited: This sounds straight forward, but it really isn't. Sprint is the only nationwide carrier to offer true unlimited. T-Mobile advertises unlimited, and where as this is true, if you exceed 5gb, they slow your speed down. So, it's unlimited in the since that they wont charge you for exceeding a preset limit, but you are still penalized, it's just not a monetary penalty.
AT&T and Verizon charge various amounts of money for their various limited data plans. T-Mobile charges a flat $10 for their unlimited plan. Sprint also charges $10, but adds an additional $10 if your handset is 4G compatible, even if 4G is not offered in your area. Sprint does not offer 4G here in Memphis, but if I had a HTC Evo 4G, Sprint would charge me the 4G fee because my phone is capable of it, even though I'll likely never get the chance to use that 4G speed.
I can't speak for most of the local carriers, as I'm not really familiar with how they handle their data.
3G vs 4G
If you want to get real picky, no US carrier offers true 4G. Most US carriers "4G" networks don't even meet international 3G standards. So take these buzz words with a grain of salt. Honestly, except in the case of Sprint (because of the 4G up charge) I wouldn't let lack of 4G turn me away from a particular network. I recently switched from a 3G handset to a 4G handset and the difference is minimal.
For example, if I like what Verizon has to offer, but they don't offer 4G in my area and AT&T does, I wouldn't change my mind just based on that. Having said that, if I'm set on having a data plan and the only data available in my area from my carrier of choice is Edge (2G), I would strongly recommend looking at a carrier who does offer 3G in your area. Edge networks are extremely slow and not worth the money you are charged for the privilege of accessing.
Handset Options
As I said above, OEMs make similar handsets available for all of the Big Four and most local carriers. With the exception of the iPhone (at least for now), you'll find something you like almost anywhere. Currently, the iPhone line of handsets is limited to AT&T, with Verizon having access to the iPhone4.
Currently, Microsoft's Windows Phone is available only on GSM (we'll discuss this below) netoworks. CDMA (again, below) compatible phones are currently in the works and should be released before the end of the year.
Reliabilty
There is no real scientific way to determine reliability in your area. All you can really go by is word of mouth on this one. AT&T is pretty notorious for being extremely unreliable and slow, but many claim that this is more of a flaw in the iPhone design than AT&T's fault. This may or may not be true. It is interesting to note that most people who complain about AT&T's network are iPhone users. Many of my friends who use AT&T but are on a different handset say they have little to complain about. In my experience, the same can be said about Verizon's network. This is not me bashing the iPhone. I am simply presenting to you information that I have gathered over the years from online research and word of mouth. Like I said, there is no hard proven way to determine the reliability of a wireless network. Your best bet is to ask people who live in your area what they think of they wireless carrier.
GSM vs CDMA
These are fancy terms for the type of network each carrier is running. You need to know very few things about this, and knowing these things will likely not change your mind about what carrier you choose.
GSM (Global System for Mobile) will allow you to use your voice and data networks at the same time. This means you can be talking to someone, put them on hold or speaker phone, and access the internet while the call is still in place. This type of network is used by both AT&T and T-Mobile. This is also the type of network that is used by virtually every wireless network outside of the United States. That means that, with a little tinkering, you could possibly (even though it's not likely) use your current handset overseas.
CDMA (Code Division Multiple Access) does not allow you to use your voice and data at the same time. This means that you must end any active phone calls before you can access the internet, and any incoming phone calls will interrupt your data connection. Both Verizon and Sprint, as well as local networks who lease time from either of them, use this type of network. This network is not commonly found outside of the United States. NOTE: Verizon's 4G network is LTE, which does allow for simultaneous voice and data. Sprint's WiMAX 4G network does not. Sprint is rumored to be switching to LTE in the future.
Unless using your phone overseas is a big deal, this shouldn't push you one way or the other. It's just good information to have.
I hope this has helped you. Deciding on a carrier is big commitment, as you're likely stuck with that decision for at least two years. Once you've decided on a carrier, come back and read part 2, which focuses on handset. Remember, phones can be changed a lot easier than carriers can. Please, choose a carrier before choosing handset.
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