I get asked frequently how you might be able to reduce your cell phone bills. The technological movement towards wireless is inevitable. In my estimation, within the next 10 years consumers may do away with having wired services at home altogether and in a previous article I wrote, AT&T wants out of the “traditional” telephone business because it has become an expensive, inefficient network to maintain.
Additionally, the phone providers (and cable companies) create confusion by creating numerous plans for you to pick from which are pretty ridiculous. Could you imagine going to your water or power company and have to pick from various plans depending on your usage? (Do you like to take a lot of HOT baths? Well then you need our “all inclusive” plan) Because of the variety of nuance differences I’ve put together a handful of tips that could help you save a little or a bundle.
1. If you are traveling internationally, don’t assume your rates are only going up just a little. Depending on your carrier, the country you’re traveling to or even the type of phone you might call can add up to a hefty phone bill. Even if somebody calls you and leaves you a voicemail, THAT ALONE could cause you to incur a charge. Check with your carrier, find out the details it is not uncommon to see on our clients bills several HUNDRED dollars in roaming charges from one phone for a short trip out of the country.
2. International DATA charges are worse. I can’t tell you the groaning I hear from clients who “just checked their email” from their phones REALLY REALLY quickly but found a $25 charge for doing that. If you don’t have a data plan, and you travel outside the US, the best advice I can give you is to leave your phone at home, but if that doesn’t work, call your provider and arrange for your travels. Believe me, it will be worth it.
3. Texting. This is a huge gripe with me. I don’t agree with texting fees, I find them to be ridiculous because it is a small amount of data, like data you transmit when you check your movie times. However no amount of griping by me seems to have made a dent in the billion dollar phone companies plans as of YET, but in the mean time I offer three solutions:
a. Text rarely. If you text a lot (ahem teenagers), then this may be difficult to stop, but for those of us who prefer not to try and text doing it less will keep your bills lower. At about .20 per message it can really add up so watch it.
b. Text plans. At $5 per month, this is money well spent for those who text in the thousands each month. And yes, I have seen people text more often than you think could be possible!
c. Go FREE. If you have access to a smartphone, applications such as Skype, Fring and Google Voice can let you text for FREE. What these applications do is exactly what I think phone companies should be doing all along is treating texting like bits of data and not upcharging you for it. If you have access to these applications, use them!
4. Run the math on Insurance. “Benny, is cell phone insurance worth it?” I get asked this question all the time. Honestly, this is a tougher question to answer that really depends on a few things. Do you have to have the latest and greatest gadget out there? Have you dropped your phone into the toilet more than once this year? When was the last time you had to back to a restaurant to find where you left it? Many people think that insurance is actually offered by the phone companies themselves, it is not. It is handled by a third party company that administers your insurance claims and they can be a bit frustrating to work with. Things like deductibles (anywhere from $35 – $150 depending on carrier and phones) and the fact you may receive a refurbished phone are typically not widely shared. Your sales reps vary in knowledge of the insurance details. You have options, you don’t have to take the carrier’s insurance, there are other other companies such as safeware.com, squaretrade.com, Best Buy offer options as well. Additionally, SOME home and auto insurance companies let you add smartphones via a personal articles policy. For less expensive phones such as a basic flip phone when coupled with a $39 deductible, it does not make sense.
**Did you know you can buy an unlocked phone on the internet and use that to replace your phone? With GSM-based networks (AT&T and T-Mobile) you simply swap a SIM card to change phones.
5. Don’t use 411, there are free alternatives
Dialing 411 can cost up to $1.75 per call, sure it’s easy but you have alternatives to the “old way” (800) FREE-411, (800) GOOG-411, (800) 555-TELL. Also, don’t forget to use your browser if you have a smartphone.
There you go, I hope that helps. If you run a company, it would be in your best interests to educate anyone who is has a corporate liable phone. Developing a wireless phone policy is imperative, the costs for wireless devices can creep up each month, without regular monitoring you may find yourself with a bill 20 – 45% higher than it should be.
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