Saving Money on Your Phone Bill
Options and Strategies for Spending Less on Phone Service
May 16, 2009
People have several options for trimming down communication expenses, whether they stay with their current provider or switch service types.
Traditional Land Line Phone Service
According to the Federal Communications Commission (FCC), the average household with a land line spends $48 per month.
Customers with land lines should examine their monthly bills and cut out any non-essential features. For example, If they pay for features like three-way calling or call-waiting that they rarely use, they should cancel them.
Also, people that use their phone infrequently should see if their provider lets them switch to a 500-minute plan or other package that offers a set number of minutes at a low rate.
Alternatives to Long Distance
One feature that many people can get along without is long distance. Most land line plans charge a flat monthly fee for the ability to call long distance, then charge per minute of long-distance call on top of that. Some alternative to long distance are:
- Calling cards
- Cell phone plan
- Audio/video Internet chat
Calling cards are a good alternative for the infrequent long-distance caller. Some calling cards even offer lower per-minute rates on long-distance, making them a better deal for frequent long-distance callers. Cell phones generally don't distinguish between local minutes and long-distance minutes, so if a person already has a cell phone then it might make more financial sense for them to discontinue their wired long distance service.
The Internet also offers many completely free ways to call interstate and internationally, both with and without video capabilities. Skype is one video chat company that allows people to create an account and call any other Skype user in the world for free.
Cell Phones Only
FCC statistics say that Americans are now spending more on wireless service than they do on land line service. Many households have both, but some households are choosing to forgo land line service altogether in favor of their cell phones.
Doing so has several advantages. Users can make and receive calls anytime and from anywhere, even if they aren't at home. They will probably need to upgrade their cell phone plan to include calls usually made and received on the old land line, but overall will probably spend less money. The disadvantages are that dropped calls or spotty reception in areas may be frustrating to some customers.
Pay-as-You-Go or Prepaid Plans
The FCC says that the average cell phone bill is $85, but many customers spend much more on their plans. With such a wide variety of plans available, it pays to look into prepaid cell phone plans, sometimes called pay-as-you-go plans.
Prepaid plans make sense for people who want a cell phone for emergencies or occasional calls, but don't rely on their phone as their primary method of calling. Major wireless providers feature pay-as-you-go plans, but specialized prepaid providers like TracFONE are usually cheaper.
VOIP (Voice Over Internet Protocol)
VOIP phone service runs over a broadband Internet connection, making it a particularly good deal for those who already have a cable, DSL, or ADSL connection. Just be aware that if the broadband connection goes out, so does the phone. Call quality with VOIP is generally better than cell phones, but not as good as land line service. Traditional wired phone service providers are beginning to offer VOIP, but it is usually more expensive than service from dedicated VOIP companies
It is by far the cheapest option for phone service, with some providers charging as little as $20 a month for plans including unlimited long distance. Up-and-coming VOIP providers like Phone Power provide service for the best price.
People looking to cut communication costs have a variety of alternatives available to paying high monthly bills. Knowing what they are paying for, shopping around, and checking out alternative types of services can save money on phone service.
Readers might also enjoy "Spend Less on Baby Products," "Save Money Online," and "Cut Grocery Spending in Half."
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