How to Save Big Money on Your Phone Bill
by www.SixWise.com
It's common for Americans to pay $70 or more for a home phone
line, $50 or more for a cell phone, and even more for extra
lines, voice mail, long distance and other phone "extras."
And, if you don't plan carefully, an extra half-hour spent
talking to your aunt in Des Moines and an hour with that customer
in Alaska can add up to hundreds more each month.
Over 8 million Americans have given up their landlines
in favor of a "cell-phone-only" lifestyle.
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Is there a "best" phone option out there to save
money? Probably not, simply because we all have such varied
needs when it comes to phone-calling.
However, there are many ways to cut down on your own bill
so this basic necessity doesn't end up breaking the bank.
Ditch Your Landline.
Many people are opting to get rid of their home phone landlines
and use a cell phone as their only phone. It is now possible
to transfer your home phone number to a cell phone and, in
fact, more than 8 million people in the United States have
already made the transition.
Said Travis Larson, spokesperson for the Cellular Telecommunications
& Internet Association in Washington, DC. "We find
that normally, it's students and people under the age of 30
who cut their landlines."
The benefit to this is obvious: If you previously used both
a landline and a cell phone, you cut out an entire phone bill.
Plus, most all cell phone plans include long distance calls,
so you don't have to worry about pricey "per-minute"
rates of typical landline long-distance plans.
There are cons though. Your cell phone connection may be
sketchy in some areas, and you have to watch out for extra
charges for "roaming" outside of your service area,
or choose a plan with no roaming charges. And, you must keep
your cell phone charged at all times, which many fail to do.
There is also the issue of safety. During
emergencies, such as 9/11, cell phone lines can become tied
up, leaving you stranded. It's also relatively easy
for cell phones to get lost, broken or stolen, leaving you
-- once again -- potentially stranded.
Another major caveat: If you dial 911
from a landline, the dispatcher sees your street address and
phone number. This is not so with a cell phone. Cell
phone companies were required to improve their ability to
provide location information in emergencies by December 31,
2005, but, says TURN (a utility reform network) research director
Regina Costa, "Even when this occurs, the service will
not be as fast or seamless as landline 911."
This is because some cell phone companies will provide emergency
locations using a GPS location finder. However, you will likely
have to purchase a new cell phone with GPS capability if you
want this service.
"At its best the GPS won't be as reliable as your landline
in emergencies," Costa said.
One final consideration, if you use DSL or dial-up Internet
access, a landline is required (a cable modem comes through
cable TV lines, and does not require a landline).
Keep Your Landline -- Ditch Long Distance.
If you opt to keep both a landline and a cell phone, consider
getting rid of long distance service on your landline. Most
cell phone plans include long distance, while this service
will be extra (and sometimes costly) on a landline.
This way, you only pay for local use on your landline, and
use your cell phone for any long distance calls.
Internet Phone Service
VoIP phone service can save you significant money on
your phone bill, but only if you have a broadband Ethernet
connection.
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VoIP (or Voice over Internet Protocol) allows you to make
phone calls using your broadband Internet connection instead
of a standard phone line. This service converts your call
into data that travels over the Internet, like an e-mail,
then comes out at the receiving number like any typical phone
call.
Vonage is currently the leader in this service, but other
major carriers are also developing VoIP services.
The benefit is that VoIP is significantly cheaper than landlines
or cell phones, and offers services such as call-waiting,
caller ID, voicemail and three- (or more) way calling for
no additional charge. For $24.99 a month, for instance, Vonage
offers unlimited calls to anywhere in the United States, Puerto
Rico and Canada. Typical phone companies could charge three
times or more for a more limited type of service.
The downside is that the service may not work during power
outages and there is a similar problem with 911 calls as with
cell phones. Although most VoIP providers offer "Enhanced
911" (E911), some VoIP services may not be able to always
connect to a 911 dispatch center or transfer the location
of callers.
You must have a broadband Ethernet connection, such as Cable
or DSL, to use this service.
Seven Quick Tips to Find the Best and Lowest Cost Cell
Phone Service for You
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Tailor it to your lifestyle. If you travel often,
make sure your plan has no roaming charges and competitive
international rates. If you talk often, make sure you
have enough minutes to cover your calls (going over the
minutes in your rate plan can add up fast).
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Consider a family plan. Most carriers offer plans
to help reduce the costs of multiple phones for one family.
Under one basic plan, you can add another line for a minimum
charge. Be aware, though, that everyone on the plan will
be sharing one "pot" of minutes.
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Get your friends and family into one network.
Most carriers offer free "mobile-to-mobile"
minutes that allow customers to talk to one another without
using up minutes. This can drastically cut down on the
number of minutes you need to pay for, and therefore cut
down your bill.
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Find out whether your plan rounds calls to the second
or the minute (is a call that lasts 2 minutes and
1 second charged as a 2-minute or 3-minute call?). Of
course, a plan that rounds to the second can save you
money, as your minutes will not add up as fast.
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If you only use your phone for a finite number of minutes
each month, or you just want one for an emergency, consider
a prepaid plan.
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Watch for changing rate plans and promotions.
If you notice a better rate from your carrier, they will
often switch you to it for no fee. (Switching to another
carrier entirely is often not economical, as you may be
liable for charges for breaking a one- or two-year contract.)
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Watch out for cramming, which the Federal Communications
Commission (FCC) says is the "practice of placing
unauthorized, misleading, or deceptive charges on your
telephone bill." This can happen with cell phones
or landlines. If you notice an unusual charge on your
bill (even one for only $2 or $3), call the phone company
and find out what it's for.
Recommended Reading
The
Easiest Ways to Opt Out of Telemarketing Calls, Junk Mail,
and More
12
Tips to Lower Your Heating Bill This Winter
Sources
Landlines
Get Cut: Cell Phones on the Rise
Cell
Phone Number Portability
Federal
Communications Commission Consumer Facts