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October 9, 1997


TRAC Report Advises Consumers: Do Your Homework Before Picking Cellular Service

CDMA Digital Standard Compares Best of New Technologies



Washington, DC -- Consumers need to do their homework before picking a cellular telephone service, according to a newly released study by the Telecommunications Research and Action Center (TRAC), a non-profit Washington based consumer gr oup. TRAC, publisher of TeleTips™, has been educating consumers on the changes in telephone and telecommunications since 1980. In this first-ever TRAC report on cellular service, the study reviews a number of new technologies and concludes that the technology called CDMA compares the best.

"Picking a cellular service used to be a choice between two companies, each offering the same technology and essentially the same service. Today, a growing array of providers and technologies are available, and consumers need more information and sophi stication to make smart choices." said Samuel A. Simon, counsel to TRAC. "It is not easy to make the best choice."

The TRAC report provides an in-depth explanation and evaluation of the four different cellular standards -- analog, TDMA, GSM and CDMA -- and evaluates each one based on voice quality, reliability, pricing plans, enhanced services and availability.

The report recommends consumers undertake a "self-assessment" to determine how they expect to use the phone and what services and features are likely to be most important. I then outlines the questions for consumers to ask, focusing on the new digital technologies.

"All cellular service is not the same," Simon said. "It’s hard to know which newspaper ad is telling the truth when every company is claiming to offer the most state-of-the-art service on the largest network."

Of the four technologies -- analog, GSM, TDMA and CDMA -- the report states that CDMA came out ahead in almost every category that TRAC compared.

Among the recommendations of the report are:

  • Availability will matter a lot more to consumers who travel a great deal with their cellular phone than to consumers who stick closer to home. Analog cellular service is currently available in most areas of the country, and the more advanced CDMA serv ice is expected to be the most widely available digital service in the future. Of the other two digital services, GSM will be offered in most major cities and TDMA is expected to be available in the east and in some western states.
  • Privacy is another area in which phone service providers compete. Because analog systems basically use radio transmissions which can be easily overheard, many wireless phone users want more security for their conversations. If you only intend to use y our wireless phone for emergencies, privacy probably won’t matter much. But if security is an issue for you, any of the digital systems will give more protection than an analog system. GSM or TDMA, therefore, might be a good choice. CDMA, which was origin ally developed for military communications and actually scrambles each transmission, offers the highest level of security as well as the best overall sound quality.

The TRAC study developed a Quick Consumer Checklist to help buyers find their way through the maze of cellular claims and counter-claims.

Analog offers by far the greatest availability, but TRAC found that all three of the digital technologies provide significant advantages over analog when it comes to services. Among the digital services, CDMA performed the best in key categories such a s signal security enhanced service and reception, but the difference wasn’t enough to outshine the other digital services completely. When it comes to power needs and reliability, however, CDMA was a clear winner. That’s important because it means that wi th CDMA you’ll spend less time recharging batteries and run much less of a risk that your calls will be interrupted or dropped as you travel.

Until digital systems are more widely established, a dual-mode phone that switches back and forth between digital and analog cellular services may be the right choice for most consumers. But given CDMA’s rapid expansion in the U.S. and its superior ser vice quality, CDMA today looks to be the best bet for our money over the long term.

In addition to the Quick Consumer Checklist, the report contains a listing of the major service providers and the technology they offer in the top markets, with phone numbers on how to reach them. The report also contains tips on how to pick the right pricing plan for your calling needs.

Copies of the Report are available from TRAC, PO Box 27279, Washington, DC 20005, for $7.95, plus $1.50 for postage and handling.

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MEDIA CONTACT:

John Breyault, TRAC, johnb@trac.org, 202-263-2943

ABOUT TRAC:

The Telecommunications Research and Action Center (TRAC), founded in 1983, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options. TRAC can be found on the web at http://www.trac.org.