TRACNotes
Vol. 3 # 42 --
October 21, 2005
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BUCKS WATCH
TRAC’s Top 10 Ways For Low Volume Callers to Save Money On Phone Bills
- Drop that extra phone line. Consumers with more than one local phone line in the home can likely realize the biggest savings by reducing the number of extra lines by as many as possible. Each line is charged a separate subscriber line charge (around $6.00 per month) as well as any applicable taxes such as universal service fund (USF) fees in addition to the monthly service fee. Consumers who are paying for a second line for their dial-up Internet connection should consider switching to DSL. Not only is DSL faster than dial-up, but the fee for DSL will likely be less than the combined cost of the second line plus and the fee charged by a dial-up Internet service provider. Consumers with a second line for faxes should investigate line sharing devices like ComSwitch which enable the use of a single phone line for telephone calls and faxing. “E-fax” services can also be used.
- Dump your long distance carrier. Chances are that you already have free national long distance on your cell phone. What better way to use up those unused minutes than by using your cell phone to make most or all of your long distance calls? Also consider using prepaid long distance calling cards from major discount wholesale stores like Costco, Sam’s Club, or BJ’s. 10-10 dial around services can also help low-volume long distance callers save money. Read TRAC’s prepaid long distance card analysis here.
- Choose a local cell phone service plan instead of a national plan. Cell phone companies don’t advertise them, but most offer local area-only calling plans that cost $5-$20 less per month than comparable national calling plans. For consumers who don’t travel outside their local calling area much and don’t plan to make long distance calls on their cell phones, these plans can be a bargain. Remember to watch out for high roaming fees on calls made outside the local calling area, as they are usually charged at a rate of 45¢ per minute or more. Read more about local cellular calling plans by clicking here.
- Cut out the unused features. Many local telephone plans include three or more “included” calling features such as call waiting, caller ID, call forwarding, three-way calling, etc. Most consumers only use a few of the features available to them. Instead of paying a bundle for a bunch of features you rarely use, consider paying a separate monthly fee for only the features you really want. Chances are that the total cost of these “a la carte” features will be less than the cost of paying for a bundle of five or six features that never get used. Try using the "clothes" rule. If you haven't used a calling feature in the past year, get rid of it.
- Pare down your cellular service plan. The average American wireless phone user uses less than 25% of their available monthly minutes, according to a recent study. Since most users are on plans that offer a bucket of “use them or lose them” minutes, they are paying for all of their minutes whether they use them or not. Consumers who consistently find that they are using less than 50% of their monthly minutes should consider switching to a cheaper plan with fewer minutes.
- Use a prepaid wireless phone if you only make a few calls per week. Light volume cell phone users can save money by opting for a prepaid cellular phone over the big bucket of minutes with the hefty monthly bill than most big cellular companies offer. While the upfront cost of purchasing the phone is higher, the savings lie in paying only for the minutes you use. In addition, prepaid users won’t get hit with the add-on fees and surcharges that so-called “postpaid” (users who pay a bill at the end of the month) are charged.
- Use free directory assistance services instead of 411. There are so many free ways to find a phone number these days, it’s usually a waste of money to pay the 35¢ to $1.50 that telephone companies charge for directory assistance via 411, 555-1212, or 0-0. Websites like www.superpages.com, people.yahoo.com, and www.anywho.com (just to name a few) are as close are your computer. Additionally, 1-800-FREE-411 offers free residential, business, and government listings at no charge for any phone user as long as you’re willing to sit through a ten-second advertisement.
- Keep a deactivated cellular phone for emergency use. If you have a friend of family member who is getting ready to throw out their old wireless phone, ask them to give it to you instead. Then stash the phone in your car’s glove box for emergency use. The FCC requires that all cellular phone carriers complete 911 calls from one of their wireless phones, even if the user does not have an active service plan. This being the case, there’s no reason to pay for a wireless service plan if you only want a phone for emergency use. Additionally, users can make a non-911 call from a phone without a subscription if they are willing to enter a credit card number and pay a hefty fee. Make sure to keep a charger handy, however, because no cell phone will work if its batteries are not charged.
- Pay attention to your phone bills. Landline and wireless phone companies are huge entities with complex billing systems that often bill their customers erroneously. If you see a charge on your phone bill that you don’t agree with, don’t be afraid to call the phone company. Chances are that with a little encouragement, the company will be willing to waive the charge, especially if you mention that you’ve been considering switching to another carrier.
- Consider metered local phone plans. According to the FCC, the average household pays $37 per month for local service. The overwhelming majority of local phone users pay for “all you can eat” local service plans that offer unlimited local calling. With more and more consumers opting to communicate via instant messaging, e-mail, and wireless phone instead of by a phone call, it may make sense to switch to a more limited local calling plan. For example, Verizon customers in Virginia on the company’s bare bones Economy Message Service ($5.50 monthly fee, 9.6¢ for all local calls) would have to make more than 250 minutes worth of local calls per month before they begin to lose money versus the standard $29.95 “all you can eat” Verizon Local Package.
Coming in next week’s TRACNotes -- TRAC’s “Top 10 Ways for High Volume Callers to Save Money on Phone Bills” Sprint Raising Fees On Eight Long Distance Plans - Sprint long distance subscribers could be in for more tricks than treats the day after Halloween. Starting November 1, subscribers to the AOL 5¢ Anytime Provided by Sprint, Sprint Nickel Anytime II Promotion, Sprint Nickel Nights, Sprint Nickel Nights Canada, Sprint Nickel Night Weekend Promotion, Sprint 7¢ Anytime, Sprint 7¢ Anytime from AOL, and Sprint Sense Anytime long distance plans will see their monthly recurring charge (MRC) increase by $1.00. According to the company, customers with the Option 6 FONCARD (99¢ per minute, 99¢ to connect) who obtained service on or after July 19, 1999 and who have Sprint local phone service are exempted from the increase. Also effective November 1, Sprint customers on the Sprint Standard Weekend long distance plan will begin to be assessed a $3.95 monthly charge, whether they make a long distance call or not. The Standard Weekend plan is no bargain for most people, charging consumers 40¢ per minute Monday-Friday, 25¢ per minute on Saturday, and 10¢ per minute on Sunday. Sprint long distance subscribers who are unsure which long distance plan they are on should contact Sprint customer service at (800) 877-4646 to verify their plan and make changes if necessary.
WIRELESS WATCH
Cingular Gains, But Still Trails Verizon Wireless and T-Mobile in Customer Service - When it comes to wireless customer service, Cingular has historically been at the bottom of the pack, seemingly more concerned with gaining new customers and buying up rivals like AT&T Wireless than making their current subscribers happy. However, according to a new survey by market research firm Vocal Labs, Cingular is finally starting to close the customer satisfaction gap between it and Verizon Wireless and T-mobile, the historic market leaders in overall service quality. In the second quarter of 2005, Cingular improved from a C to a B rating in call completion and continued to carry a B rating in caller satisfaction. For ex-AT&T Wireless subscribers still clinging to their old AT&T phone, however, service remains spotty with a C rating in caller satisfaction and a D in call completion. By way of comparison, Verizon Wireless took top honors with an A rating in caller satisfaction and a B rating in call completion. T-mobile continues to offer affordable service with good customer satisfaction, earning B ratings in both caller satisfaction and call completion to take 2nd place in Vocal Labs’ rankings. For more information on this survey, click here.
INTERESTING LINKS
FCC Main Page: http://www.fcc.gov
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15
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