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Three smart strategies to trim down your monthly telephone expense

These days consumers are definitely feeling the pinch of escalating prices. From the gas pump to the grocery market, costs are leaping higher. But the phone bill is an area where smart folks can still save. For most people, phone related expenses are a significant element in the family budget. Notwithstanding the fact that telecom costs have dropped considerably in recent years, this remains a cost that can be cut through prudent planning. These techniques will help you achieve this goal.

Tip 1: Switch over to a shared-use plan on your cell phone bill

According to data published by the Kiplinger Letter, the average cell phone bill in the United States runs approximately $55 a month. You might ask how the average could be $55 given that so many ads for cell phone providers promoting $29 or $39 plans. Part of the reason is that a few power callers spend $79, $89 or more per month. Part of the reason is taxes and miscellaneous charges such as 411. But a major reason is the fact that cell phone companies hit you on "overage". Let’s say you’ve got 1,000 peak minutes and this month you hit 1,099. At thirty or forty cents per minute on overage, your cell bill suddenly rockets up twenty dollars. Seem familiar? The next month you get to 900 minutes but you don’t see a corresponding reduction on your bill. Some providers claim to solve this problem for you by allowing you to rollover your. And the rollover does help increase your peak minutes quota for the following. But even then, you still get assessed overage if you exceed your increased peak minutes quota.

Shared use plans are the most elegant solution for this dilemma. Also called "family-plans", these plans allow you to aggregate all of the minutes of 2 or more users into a bucket. Since variability is typically a function of individual usage patterns, these variability quotients tend to cancel each other out. Think of it this way: if you and your spouse both have individual plans for 1,000 minutes and one month you get to 1,100 minutes and your spouse reaches 900 minutes, you’re in for overage surcharges to the tune of 100 minutes. If you have a family plan, your total comes in at 2,000 minutes and no overage!

Tip 2: Don’t use your regular long distance provider to make international calls

Most long distance phone companies offer very good rates for domestic long distance. If you are a frequent user on a good plan you are probably paying less than five cents on a per minute basis. 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 or five dollars a month many providers charge for the privilege of getting lower rates.

In recent years, there has been an explosion of superior options. Sometimes called "PINLESS" dialing plans, these offerings allow you to call anywhere in the world at rates forty to seventy percent less from your landline or cell without needing to dial a pin code. If you type "cheap international calling" into a search engine you’ll see a plethora of options. The basic way they work is that callers register one or more phone numbers and input a credit card number. They offer you a toll-free number and when you dial this number from a registered phone, you can call any country without needing a PIN code. Using the above example, one could reduce the charge from 50 cents to 15 cents per minute.

Tip 3: Use a free teleconferencing 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 have learned to cope. In the last five years, there have been literally 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 dial the same number and enter the same PIN, they are put into a group call. Apart from regular toll charges, there are no charges assessed by the providers. If you have a large extended family, one thirty minute call could easily substitute for five to ten one-to-one discussions for planning a trip or family event.

Unfortunately, it is often a bit of a hassle to actually arrange these calls in the first place; consumers often are therefore reluctant to familiarize themselves with the mechanics of setting up a conference call. Rondee is an example of a free conference calling service which is working on addressing this issue. It offers consumers a way to schedule the conference on-line, have the invitations emailed out and show the responses tracked on the website. As with many corporate grade conference call companies, Rondee allows calls to be recorded.

With consumer prices rising, there’s not a lot most of us can do to fight back. But phone expense is an area where being smart can mean substantial savings. Applying these three tips will save the typical consumer 30% to 50% monthly, or several hundred dollars on a yearly basis.

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