Champ Money

We did something here at the Champ Money household that I’ve been considering for a very long time - we finally cut all ties with AT&T’s landline service.

There was a failed attempt at this several years ago when we tried Vonage VOIP service for about 6 months. That plan failed due to unreliable quality and dropped calls. I tried every tweak in the book (or on the Internet as the case may be), and have always had a rock-solid cable Internet connection, but Vonage just didn’t cut it. So, back to AT&T we went.

Now, several years later, we have 5 cell phones in our home - one for each family member. The landline was rarely used - mostly for work calls to other countries and lengthy teen conversations. This, at a cost of about $55 per month.

While the reason for cutting the service was not monetary, it’s nice to know that I’m no longer wasting that $55 per month for a service that I generally despise. I hate phones to begin with (it’s a work thing) and would much prefer email or text messages. But with the generous cell phone plan that we currently have, I don’t expect that we’ll miss Ma Bell at all.

For anyone else considering such a move, remember that the local telephone company is required to provide 911 service to any connected phone, so keep at least one plugged in when you have your service connected. In the event of an emergency, the landline is still the best “first choice”.

Are you still paying premium pricing to the monopolies for traditional landline telephone service?

Each year, more and more people are dropping their landline service completely in favor of their cell phones. This makes sense for many, especially if they only use their home landline phones minimally.

If you’re not quite ready to give up the landline completely, consider VOIP service from companies such as Vonage, Packet8, Lingo, etc., especially if you make many long distance calls, either within the United States or abroad. You will enjoy tremendous savings on long distance.

Keep in mind that VOIP quality varies - sometimes significantly - not only between services, but from one location to another. Much of this is dependent upon the quality of your broadband Internet connection, but there are other factors as well.

Definitely do not lock yourself into a contract with any VOIP company. When they work well, they are excellent. But, when they are not working so well, you’d be better off with a string and a couple of tin cans.

Before making calls when away from home, compare per minute rates and surcharges for cell phones, prepaid phone cards, and calling card plans to find how to save the most money.

Be especially careful when placing telephone calls from hotels. With few exceptions, most lodging facilities add on significant surcharges for telephone calls.

Check your phone bill to see if you have optional calling features or additional services, such as inside wire maintenance, that you don’t need. Each option you drop could save you $40 or more each year.

If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums. Or consider disconnecting the service altogether and use dial around services such as 10-10 numbers or prepaid phone cards for your calls. When shopping for dial around service, look for fees, call minimum, and per minute rates. Treat prepaid cards as cash and find out if there is an expiration date.

Once a year, review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies which provide service in your area (including wireless and cable), to find the cheapest calling plan that meets your needs. Consider a bundled package that offers local, local toll and long distance, and possibly other services, if you heavily use all the services in the bundle.