Are you paying more for phone service then you’d like to be? Then, see if one of these seven strategies could help to lower your bill:
Switch to VoIP
VoIP, or Voice over Internet Protocol, is a relatively new technology that allows you to make and receive calls over a broadband Internet connection. Providers include Vonage, SunRocket and a host of others, including many phone and cable companies.
Cost: Plans offering unlimited local and long distance range from $15-25 a month. Smaller, minute-based plans are also available; and start at $9.95 a month. To get started, you may also need to purchase a VoIP router, though many service providers offer a free router with sign-up.
Potential savings: Varies by person. To estimate your savings, subtract the monthly cost for VoIP from your current monthly phone charges.
Pros:
- Calls to the United States and Canada included in the pricing
- International call rates as low as 3-cents per minute
Cons:
- Doesn’t work during a power outage unless you have a back-up battery system
- VoIP may not be compatible with your local 911 system
- Call quality may not be as good as it is on a traditional phone line
Bundle Your Services
Do you have cable, high-speed Internet and a landline or cellphone? If so, bundling all of your services with one provider could be your biggest source of savings.
Potential savings: $20 or more a month.
Pros:
- Only one bill to pay
- New customer rebates and introductory offers may make the deal even better
Cons:
- You’ll probably be required to sign a contract
- Many bundle offers include a low introductory rate, and a much higher rate thereafter
- Taxes and other hidden fees may apply
Ditch Your Landline
Use your cell phone for all of your calls, and cancel your traditional phone service.
Potential savings: The cost of your current landline plan: local and long-distance.
Pros:
- One less bill to pay
- The ability to answer all of your calls on the go
Cons:
- If your cell plan doesn’t include unlimited minutes, you could accrue overage charges
- 911 service for cell phones isn’t available in all areas
- Forget to charge your battery, and you’re temporarily off the grid
- Call quality may not be as good as it is on a traditional phone line
Cancel the Extras
If your phone service comes packaged with a bunch of features – call waiting, caller ID, etc. – you may save money by unbundling your services and shopping a la carte. Contact your service provider to find out how much a basic, no-frills phone line costs. Then, add on just the features that you need (generally about $5 each).
Potential savings: Varies, but a basic phone line usually runs around $22 a month (taxes and fees included).
Pros:
- You only pay for what you want
- You get to customize your phone services
Cons:
- Less bells and whistles
Comparison Shop
Not satisfied with the deal your current provider is giving you? Then, shop around for a better rate. When it comes to phone service, there are more options than ever.
Potential savings: Varies by customer and locale.
Pros:
- You don’t have to wonder if you’re getting the best rate possible
Cons:
- Requires a bit of effort
Unlimited Long Distance
Do you make a lot of long distance calls? If so, signing up for an unlimited long distance plan could make a lot of sense.
Potential savings: Varies by person. To estimate your savings, subtract the monthly cost for unlimited calling from your current monthly long distance bill.
Pros:
- The same bill every month
- The freedom to make as many long distance calls as you want
Cons:
- Terms and exclusions may apply
Use a Phone Card
If you only make occasional long distance calls, a phone card may be cheaper than paying for traditional long distance service.
Potential savings: The cost of long distance service in your area.
Pros:
- You only pay for the calls that you make
- Your long distance service is portable – just take the card with you when you travel
- Since you pay up front, there are no surprise bills
Cons:
- Most cards have expiration dates
- Connection fees often apply
- Lose the card, and you’ve lost the minutes
