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Consumers are clearly feeling the pinch of rising prices. From the gas pump to the grocery store, costs are skyrocketing. Yet the phone bill is an area where savvy folks can still save. For most people, phone expenses are a not insubstantial line-item in the typical household budget. Even though telecom costs have fallen considerably in recent years, this is still an expense that can be reduced through prudent planning. These tips will help you achieve this goal. Tip 1: Switch over to a shared-use cell phone plan According to the Kiplinger Letter, the typical cell phone bill in the United States runs approximately $55 per month. You might wonder how the average could be $55 with so many ads for cell phone companies promoting $29 or $39 plans. This is partly because a few power callers spend $79, $89 or more per month. This is also partly due to taxes and miscellaneous charges such as directory assistance. But a key reason is the fact that cell phone companies zap you on "overage". Let’s say you’ve got 1,000 peak minutes and this month you reach 1,099. At thirty or forty cents per minute on overage, your cell bill suddenly rockets up $20. Seem familiar? The next month you get to 900 minutes but there is no corresponding drop in your bill. Some companies say they solve this problem by allowing you to rollover your. And the rollover does help increase your peak minutes quota for the following. Yet even then, you still get hit with overage if you exceed the increased peak minutes quota. Shared use plans are the best solution for this problem. Also called "family-plans", these plans allow you to aggregate the minutes of two or more users into a bucket. Since variability is typically a function of individual usage patterns, these factors tend to cancel each other out. Think of it this way: if you and your spouse both had individual plans for 1,000 minutes and one month you get to 1,100 minutes and your spouse hits 900 minutes, you’re in for overage charges to the extent of 100 minutes. If you have a family plan, your total comes in at 2,000 minutes and no overage! Tip 2: Try not to use your regular long distance provider to make international calls Most long distance providers offer excellent rates for domestic long distance. If you are a reasonably frequent user on a good plan you are most likely paying less than five cents per minute. The problem is that international rates are still relatively high. For example, fifty cents a minute to South Asia is typical, even if you pay the four to five dollars a month many companies charge to get lower rates. In recent years, there has definitely been an explosion of superior options. Sometimes called "PINLESS" dialing plans, these offerings enable you to call anywhere in the world at rates 40% to 70% less from your landline or cell phone without needing to remember a pin code. If you type "cheap international calling" into a search engine you’ll see a plethora of options. The basic way these services work is that callers register one or more phone numbers and provide a credit card number. They give you a toll-free number and when you call this number from a registered phone, you can call internationally without a PIN. Using the above example, you could reduce the charge from 50 cents to 15 cents per minute. Tip 3: Find a free teleconference service For a lot of families, phone charges escalate because of the need to have multiple conversations between family members on the same topics. It is inefficient but this is the way most of us cope. In the last few years, there have been dozens of companies that have launched free teleconferencing services. All of them work on the same basic idea: they give you a PIN and a toll number to call. If all participants call the same number and enter the same Pin code, they are put into a group call. Apart from normal toll charges, there are no charges assessed by these companies. If you have a large extended family, one thirty minute call could most certainly substitute for 5 to 10 one-to-one discussions for planning a trip or family event. Unfortunately, it is often a bit of a chore to actually arrange these calls in the first place; consumers often are reluctant to familiarize themselves with the mechanics of setting up a teleconference. Rondee is an example of a free conference calling service which is trying to address this challenge. It offers users a way to schedule the conference on the web, have the invites emailed out and show the responses displayed on the website. As with many corporate grade conference call companies, Rondee enables calls to be recorded. With consumer prices escalating, there’s not a lot most of us can do to fight back. But phone expense is an area where being smart can lead to saving a lot. Applying these 3 tips will save the typical user 30% to 50% on a monthly basis, or several hundred dollars yearly.
By: Scott Bailey
Scott Baily writes about the telecom industry. He consults to a number of firms within the industry and monitors the latest trends in user behavior. His clients include free conference calling services such as Rondee.
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