I spent the last year working for a Canadian phone company. Each and every day I was amazed at the amount of money customers were paying for their phone services. Much of the time they were spending money they didn't need to be spending. Below are some simple ways you can save money on your monthly phone bill.
Long Distance Plans
First, be careful of the "free" long distance plans. Many phone companies have plans that guarantee you a certain low rate on your long distance calls and charge nothing for the plan. They do, however, charge a network charge for having the plan on your account. So if you aren't making any long distance calls remove any "free" plan you have because it probably isn't free. Having that network charge removed from your account can make a difference of $2-$5, or more, per month.
Secondly, read your phone bill each month and take note of your long distance usage. If you notice your usage is going down each month, then there is probably a cheaper plan for you. If you are going over your allocated minutes each month, there may be an upgraded plan for you. Call your phone company and go over the plans that will work for you. They will be able to look at your long distance usage and figure out what plan is right for you.
Calling Cards versus Call Me Cards
There is a huge difference between calling cards and call me cards. With calling cards you can use the card to call anyone you like from wherever you are. Call me cards, on the other hand, are used only to call your home phone number. Most phone companies will charge a fee just for using the calling card, but they will rarely ever charge a fee for using the call me card since it can only be used to call the home phone number. If you use your calling card to call home, you should order a call me card and start using that when you call home. It will save a great deal of money, especially if you use it frequently.
Hardware Installation
If you need a new phone jack installed in your home it can be very expensive to have a technician from the phone company install one for you. Many companies have no problems with you installing your own inside wiring and jack. Some of them may even encourage it by giving installation directions on their websites. You may want to compare the cost of having a technician come in to your home with the cost of you purchasing the equipment at your hardware store and installing it yourself.
Directory Assistance
Many people do not know how expensive it can be to use directory assistance (i.e 411). Many companies charge in the neighborhood of $.50-$1 per use. My advice is to get out the phone book or to go an online directory assistance website, such as Canada411.ca to find the information you're looking for. It costs nothing to do so.
Bundles
The very best way to save money on your phone bill each month is to bundle everything you have. Most companies will have plenty of bundles from which to choose. I have seen customers save up to $40/month just by bundling the existing services they had into one simple package. Signing up for bundles may also waive any network charges or additional fees you may be paying each month. Call your phone company frequently to inquire about any new bundles that may be right for you.
Mention the Competition
If you really are a good paying customer and very loyal to the company you are with, you may be able to talk to a customer service agent about getting a credit on your account for being so loyal. The best way to do this is to discuss the specials and benefits the competition offers. Customer service representatives will often have the autonomy to give retention credits if they honestly feel it will save your business. My phone company offered $16/month for one year as a retention credit.
Purchase your Own Phone
It is so much cheaper to go to a retailer and purchase a phone than to purchase one from your phone company. Often you can get a phone at a department store as little as $20. The phone company often charges you a set rate each month. That rate will stay on your phone bill month after month until you eventually return the phone. I've seen customers pay over $2000 for a phone they could have purchased at Wal-Mart for $25-50. And the worst part about it is after paying all that money they still didn't own the phone. It was simply a rental fee all those months.
If there is a phone that you really want to purchase from the phone company, make sure you do not take the rental option. You can opt to pay for the phone over an extended period of time. At the end of that term you will own it.
Read your Phone Bill Every Month
If you read your phone bill each month you will be able to catch errors. Often times when a customer removes a feature from their phone it sometimes erroneously doesn't get removed from billing. This may go unnoticed if you do not read your bill. Many companies are not obliged to give credits if the customer waits too long to call back to report the error on the bill. So read your bill carefully to look for anything that should not be there.
