Tips and Tricks for Cell Phone-Gift Givers

Got someone on your list who's dying for a new cell phone? Check out these shopping tips before you hit up your neighborhood cell carrier outlet.

• Consider a pre-paid phone: Buying a phone from one of the big carriers usually entails a one- or two-year contract (if you don't, then you don't get any carrier subsidies, and that free phone you were eyeing might suddenly cost you a couple hundred dollars). Signing a contract might be fine if you're getting phones for your kids, but do you really want to sign on the dotted line for a friend, or your parents? I didn't think so. Instead, consider a pre-paid phone; typically, you just buy the handset off the rack, and it's up to the lucky recipient to activate it, transfer over their number (or not), and pay the bill. Many pre-paid phones are pretty basic, although you can find some swanky models as well; for example, you can get the Sidekick 3 from T-Mobile...for a pricey $399. Guess it all depends on how generous you're feeling.
• Get accessories instead: They're cheaper, for starters, and no contracts to sign. Know an on-the-go music lover? Then try a Bluetooth stereo headset on for size (although you should poke around first and make sure their phone is stereo-Bluetooth compatible). Road warriors would probably love getting a car kit, and faceplates make for great stocking stuffers.
• Buy a gift certificate: Have a favorite chatter who's pining after a phone that isn't a pre-paid model? Get her a gift certificate—that way, she can waltz into the phone store, get that BlackBerry Curve, Razr2, or LG Voyager (on you), and then sign the contract herself. Verizon Wireless offers gift cards in denominations ranging from $25 to $250. I couldn't find gift certificates for the other major carriers, unfortunately—then again, cold hard cash always works.
• Check the return policy: So parents, getting a phone for your teen with your name on the contract? Take a close look at the return policy first. Today's kids are incredibly phone-savvy, and they know what they want—which might not be what you got them. Most carriers will let you return a phone and cancel any contracts within two weeks to 30 days, but make sure to confirm it before signing on the dotted line.
• Beware used/"good as new" phones from eBay: It's temping to get a real bargain on a phone with auctions sites like eBay, but be careful. As my colleague Kent German at CNET points out, you won't be able to see what condition the phone is in before it arrives; also, in the case of CDMA phones, there's no guarantee that a carrier will activate it. If you're dead-set on snagging a phone from eBay, you're better off sticking with GSM phones; then, all you'll need is a working SIM card. (No idea what I'm taking about? Help is here.)
• Consider the iPhone: OK folks, before everyone goes nuts and calls me an iPhone fanboy, hear me out. I'm not saying the $399 iPhone is the best present for the holidays—only that you can buy one off the shelf without signing a contract. (If only you could buy more non-pre-paid phones this way.) Once the lucky recipient opens it up and squeals with joy, he or she can take the iPhone, sync it up over iTunes, and deal with the activation themselves. And if you get a different reaction—say, a howl of disappointment, followed by cries of "I wanted the Sprint Touch!"—no problem, just take the iPhone back to the Apple or AT&T store for a refund. No fuss, no muss.