4 ways to cut your phone bill |
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4. Try Internet phone services
You can tap the power of the Internet to reduce your phone bills. Companies like Vonage, Skype and magicJack use voice-over Internet
protocol, or VoIP, technology to offer potentially cheaper phone services.
With VoIP, telephone calls are converted into data, sent over the Internet and converted back into sound for the recipient
on the other end of the call.
"(VoIP) is the next generation of telephone service," says Andy Abramson, editor of the VoIPWatch blog. "It provides users
with a lot more than what a regular telephone company offers, including all the extra features, for a lower price."
Features like call waiting, caller ID, voice mail and call forwarding are typically included in these plans. Many plans also
let users retrieve voice mails via e-mail.
In addition, VoIP services may allow home and cell phones to ring simultaneously, so the user can answer the call no matter
where he or she is.
The cost for VoIP services vary widely. Many providers charge around $20 a month, but some services can be less than $50 a
year or even free (when you call people who use the same service). Many of these services allow unlimited long-distance calls within the
United States and Canada as part of their basic fee.
International calling rates can be cheap, too.
"I had an hour-long conversation with a friend in South Africa," says Jim Taylor, a VoIP customer in Birmingham, Ala. "When
I hung up the phone, I went online to my service provider, logged in and saw what it cost. The charge was under $6."
One disadvantage of VoIP phone services is that users need more than just a telephone and landline to make a phone call.
For starters, users must have high-speed Internet access and may have to download some computer software. VoIP provider Vonage requires
the use of a special phone adapter. MagicJack is a product in and of itself that connects a phone cord
and a computer's USB port.
VoIP users have reported problems with the quality of phone calls made over the Internet, and consumers have reported varying
levels of success when contacting their provider's technical support teams.
Another concern with alternative telephone services is if your Internet goes out, your phone service goes out, too. Ditto if
your electricity is interrupted.
"If the power goes out, it could be a problem," Taylor says.
He recommends buying a battery backup package, which can keep a computer running for about one to two hours after electricity
stops. These generally cost about $100 at an electronics store.
The ability to make 911 calls over Internet telephone services is another concern. In many cases, when users set up the
service, they're required to provide a physical address for emergency response units, and that address stays in the user's profile.
However, if the user moves any equipment to a different location without updating his or her profile, problems can occur.
"You don't want to call 911 and have the police show up at your old location," says Taylor.
Before signing up for any Internet telephone service, be sure to read some of the company's online reviews first.
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