5 steps to buying or upgrading your phone

1. Find a phone you like. Find a handset that combines the most-suitable features and style for you.

2. See which phones your carrier is offering free with a rebate. Signing a contract often entitles you to rebates and discounts for phones--find out which ones they are. If you're a current customer, call your provider to see if you're eligible for any deals if you get a new model.

3. Check out manufacturer Web sites for additional rebates. You may get an even better deal by going to the manufacturer instead of the carrier. But you should calculate whether the savings outstrip your carrier's activation fee.

4. Check third-party retailers. You also can buy phones from general electronics stores not affiliated with any carriers. Not only may prices be different but you could find alternative models not directly sold by a carrier. Just be sure to check if your carrier will support it. Also, you can buy an unlocked phone that can be used on other GSM carriers, provided you have a SIM card (the tiny identification chip that's in all digital GSM phones).

5. Read the fine print. Some things to keep in mind before you commit:

You may have to pay a fee to have the carrier activate your new phone, especially if you didn't purchase it from an authorized dealer. Some carriers, however, offer free or discounted online activation.

You can also search auction sites, such as eBay, for good deals. Use caution when going this route, however. If there's an outstanding balance tied to the number, the carrier won't activate the phone to work on a new account.

Again, be aware that if your contract has expired but you still wish to purchase a new phone, you don't need to sign a new contract. However, you'll likely pay full price for the new handset.

Consider an extended warranty if you plan to keep your phone for more than a year. Also, check your carrier's policy in case your phone is lost, stolen, or damaged.