the phone

As more people look hard for ways to cut their cellphone bills, no-contract plans are emerging as a tempting option.

Cellphone providers are rolling out a slew of new no-contract plans -- in which users pay for service in advance instead of after they use their minutes. T-Mobile USA last year began offering a range of "flexpay" plans that allow users to buy monthly service without a credit check or contract. In January, Boost Mobile, a unit of Sprint Corp., introduced a no-contract plan offering unlimited talking, texting and Web use for $50 a month, and Virgin Mobile USA followed last week with a $49.99-a-month unlimited calling plan.

To boost awareness of no-contract, or "prepaid" plans, the industry has marketed them heavily. Consumer advocates, including Consumer Reports, have encouraged phone users to take a look at the no-contract option.

However, consumers should be aware that such plans are not for everyone. Indeed, the people most likely to benefit are individuals who use their cellphones less than 200 minutes a month or more than about 600 minutes.

Of course, no-contract plans free consumers from many of traditional plans' most infuriating fees, such as those for activation and termination.

But the plans have their own costs. You'll probably pay more for the phone, for instance, and some prepaid services may add roaming fees when you leave their service areas. T-Mobile's monthly plans require you to pay with a debit or credit card or accept an extra $5-a-month fee.

And if you exceed your monthly minutes, you'll have to buy more to continue your service.
Other pay-as-you-go plans may require you to pay $1 or more each day you use the phone, and the bundles of minutes may expire in 30 or 90 days unless you buy more, even if you haven't used up what you have.

The various contract and no-contract plans are so complex that comparing them is difficult. Peter Pham, chief executive of Web site Bill which helps consumers find the best deals, says his service crunches through 10 million potential combinations.

So how do you find the best deal? Here are some suggestions:
Start by considering the quality of the services in your area. Even a cheap rate is useless if the reception stinks. Poll friends, neighbors and co-workers about how well their phones work.
Next, look at several months of bills and estimate how many minutes you need. You'll need that to compare no-contract plans.

Break that down to show weekday minutes, night and weekend minutes and how much talk is with people using the same provider, so you can compare contract plans and see if you're paying for too many minutes. For two phones or more, family contract plans can be quite efficient; they might even make sense for roommates or friends.

Contract plans tend to start at 300 to 450 minutes a month, and if you use between about 200 and 450 minutes a month, you'll spend less on a contract plan than on a pay-as-you-go plan. Heavy users may want to consider an unlimited prepaid plan if the cost of their contract plan passes $50 a month.

Be honest about your phone fashion needs. Contract plans tend to offer the latest phones at the lowest prices, so it's easier to upgrade. Plans without contracts tend to have less selection and higher phone price.

Just about every plan has additional costs. Taxes, surcharges and other fees can vary widely, sometimes adding more than 20% to your bill, so ask each provider to estimate what those charges will be. Also, calculate whether it's cheaper to order text messages or data in bundles or to get them à la carte.