Ring Leaders: Tips for Saving on Your Phone Bill

By: By Michael Antonoff Source: AARP The Magazine Date Posted:

Drop the landline

It's a youth movement you may want to join. About 17 million adults in the United States do without a traditional wire connection, relying instead on cellular service. The younger you are, the more likely it is you've cut the cord, according to a government report. Good call: If everyone in your house needs a phone while on the go, losing the landline may make sense. One less thing to pay for always has some appeal. To avoid overpaying for cellular, get a firm sense of the minutes you use each month. Hold the phone: Check with your cellular provider to make sure 911 emergency calling is in place where you live.  

Go with phone cards

If you make few out-of-area calls, a local landline plus prepaid long-distance phone cards can put you ahead. Good call: Warehouse chains Sam's Club and Costco, as well as major retailers, offer cards with rates as low as about three cents a minute. Cards advertised on the Web boast rates as low as one cent a minute, but beware expiration dates, connection fees, and other hidden costs. Hold the phone: With an access line and card codes as preliminaries, there's lots more dialing to place a call.

Connect by computer

Several fledgling companies—Vonage, SunRocket, VoIP.com, ITP, Skype—use Voice over Internet Protocol (VoIP) software to route calls worldwide through home computers. Good call: Great for anyone who racks up long-distance bills or would like to call overseas more. Most VoIP providers have low per-minute fees for international calls and charge next to nothing (typically $20 to $25 a month) for unlimited service in the United States. Skype is absolutely free between system users. Hold the phone: You'll need a high-speed Internet connection and, unless you have a battery backup, you’ll lose out if your power goes.

Bundle your buying

Some cable operators are offering discounted plans that include VoIP phone service, broadband Internet, and all those TV channels. Not to be outdone, Verizon and AT&T have begun peddling their own TV service in a few locales or bundling satellite TV service to match cable's triple play. Good call: At The Ponds, a retirement community in Monroe Township, New Jersey, where two cable outfits compete, recent package rates ranged from $80 to $99 a month. Before you switch, check what rates will apply after any introductory discounts expire. Hold the phone: Power outages may be an issue, because many cable modems lack a battery backup.

 

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