what is the catch?
 

has anyone ever dealt with these authorized cell phone dealer websites? i.e. letstalk.com? what is the catch? is the contract with the provider (sprint, tmobile, etc.)? i feel like there must be a catch if i can get a phone for free from here while it would cost me $100+ on the sprint website.

also does anyone have any recomendations on a provider with regards to corporate discount (for a fortune 20 company)? have you been able to negotiate a better deal then they orginally offer?

Heck, that's nothing. Frequently, Amazon will pay you money (after rebates, of course) to take a phone + contract from them. techbargains.com usually has details when these offers are running.

No catch. T-mobile/Cingular/Sprint/VZW want customers badly; so they will pay an indirect dealer a large sum of cash for bringing in new customers. Some operators pay as much as $500 per customer depending on the plan.

I got a phone through SimplyWireless.com which at the time was not available through Cingular, and was a bargain to boot. The version I got was obviously intended for the Singapore market-- all the preset GPRS services are Singapore telcos, the manual was English-Chinese-Melayu trilingual, and the charger had a British plug with a US adapter. It didn't have any of Cingular's software installed, not that I miss it too much (except maybe AOL Instant Messenger).

SimplyWireless signed me up for a different area code from the one I requested, bit Cingular was able to change that at no charge after I activated the account. The phone itself works perfectly fine. As far as I can tell the contract, customer service, online account management, etc. with Cingular is no different than if I'd gone with them directly (I even got my referral bonus after activating).

I've always thought that this is due to the fact that most people aren't capable of making the distinction between phone, providor and reseller, so most people who want a cell phone go to the provider directly, thinking of them as "the cell phone company".

The provider can then charge a premium to these customers, because even if paying extra, they'll still go directly to the provider. The thought of paying for a phone at one place and then paying for the service at another is too complicated. These are the same people who walk into a Cingular store and pay $40 for the name-brand Motorolla car charger, instead of walking next door to Radio Shack for the $20 knockoff -- or shopping around on the Web to find it for $10.

People look at products in terms of what they do. This carries over in how they buy things/services. They perceive the phone, service and even accessories as "the whole widget", and so when they go to buy it, they want to buy the whole widget from the widget people.

Anyone willing to do the extra legwork, even when it's just a couple of extra steps, will save a bunch.

if i go through a reseller, will i be able to transport my previous number?

You should be able to port your number. I would call the provider to be sure, but I believe it is possible.

Resellers do often have good prices. And yes, you can get a phone from Amazon or letstalk.com or wirefly.com for less than if you went to Cingular/ATT or Verizon Wireless or Sprint, etc. One thing to keep in mind, though, is this. Whereas the corporate stores or corporate sites will give you 30 days (ATT/Cingular) or 15 days (Verizon) to try out the phone and service, the independent reseller will give you less. And they will not take the phone back if you have used more than a given number of minutes of talk time (it varies). Plus, do realize that if you are starting a contract with the provider, you are signing two contracts-- one with the service proder and one with the reseller. If you terminate early, there are TWO termination fees-- one to the provider and one to the reseller (remember, the cellular company paid the reseller who got you to sign). Also, if you are upgrading a phone, you may not get the same price as if you were a totally new customer (because the kickback to the reseller may be less than if they got you as a fresh customer).

Just some things to consider.

The other thing to consider is that often the third parties offer their own rebate to advertise the low price. These rebates can be tricky to claim. For example, Let's Talk requires the rebate form, the packing slip, a sticker, your 4th month bill showing payment in full, and must be postmarked between 120 and 180 days after it shipped. Allow 8-10 weeks for the check to be issued.

This means, assuming you track all the paperwork for 5 months, it could be 8 months after getting the phone before you see the rebate.

I've gotten a cell phone contract from a place like this, I'm pretty sure I never got the big rebate - that's the catch. the rebates from the carrier themselves usually are reliable, it's the site's own rebates that you shouldn't bank on. amazon is reliable though, my first phone I got from them and got all the rebates

I've had good luck with Amazon rebates as well. There are just as many hoops to go through, but it seems more likely that there will be a reward for doing so with them.

Including the rebates, Amazon has some pretty good deals on phones. You can usually end up actually getting more back than you spent in the end, even for the best phones.