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Dial up digital savings
By David Ho |
January 11, 2009, Sunday
|
Print Edition
Print Edition
LOOKING to save money in a gloomy economy, Toby Schmidt set out to lower his phone and Internet bills with a simple strategy: He asked to pay less.
First, the Chicago freight broker switched to cheaper Internet calling through eBay's Skype, ending phone service from RCN Corp. Then he told RCN about a cheaper Internet rate from rival Comcast Corp. and asked for a better deal. He got one.
"I cut my bill down from US$80 a month to less than US$40 in all of five minutes. I just saved myself almost US$500 a year over my lunch break," said Schmidt, who has wedding bills to pay and a wife in graduate school.
Many people are looking for ways to cut the mounting costs of TV, Internet and phone services, which can take a significant chunk out of tightening monthly budgets.
There are ways to save without crimping on the entertainment and communications needs of the digital age, consumer advocates say.
TV
Pay-TV costs often account for the bulk of these expenses. On the flip side, the potential savings are great and will only increase as cable rates rise, said Ben Popken, editor of Consumerist.com, the Website where Schmidt learned about asking for a lower bill. "People are amazed at how easy it is. All you have to do is ask," Popken said.
He said consumers need to research pay-TV rates in their areas and then be persistent in calling providers, since the only thing standing in the way of a deal might be the mood of the person taking the call.
"The retention reps at these companies, their whole job is to keep you from switching," he said.
Actually switching can also bring savings as cable, satellite and phone companies offer firstyear TV discounts to steal customers from rivals.
Some cost-conscious consumers are cutting premium channels or getting rid of cable entirely. Instead, they watch combinations of over-the-air TV, shows on the Internet and DVD rentals.
"There are a lot of entertainment options out there," said Paul Eng, senior electronics editor at Consumer Reports. "You might say, 'Why do I need HBO? I can probably get some of these great movies online'."
The nation's switch to digital over-the-air broadcasts in February will also offer more high-quality
TV choices besides cable, Eng said.
Internet
The hottest marketing strategy in the telecom industry is the "bundle," packages that include Internet, phone and TV services.
Eng, of Consumer Reports, said bundles can provide savings, but they aren't for everyone and consumers should choose carefully.
"Most of the time, those deals are limited," he said. "That rate is only good for six months or a year and then it jumps up."
Some bundles make Internet service cheaper, but consumers may prefer stand-alone access in the form of "naked DSL," which comes from a phone company without calling service, Popken said.
Such service from Dallas-based AT&T Inc can range from US$20 to $45 a month.
The speeds typically are slower than cable connections or the fiber-optic services from AT&T and New York's Verizon Communications Inc.
However, naked DSL is still "a really great deal," Popken said. "That's why the cable companies will never tell you about it."
He said another option is for neighbors to split the cost of Internet service by sharing a Wi-Fi hot spot.
Phone
Many people are trimming bills by "cutting the cord," eliminating land-line phone service entirely and using only a cellphone or Internet-based calling.
"Ten years ago if this economy happened, you might have seen people canceling wireless service," said Jeff Kagan, a telecommunications analyst in Atlanta. But now, he said, "wireless service is the key. It's more important to us than wire-line service."
Even without completely cutting a land line, there are savings in getting rid of features such as call waiting.
There are also ways to save big with cellphones, according to the Telecommunications Research and Action Center.
The biggest potential savings can come from ditching contract-based wireless service and getting a prepaid phone instead, the center said. This option, which may be good for people who use less than 200 minutes a month, removes the risk of overage charges and early cancellation fees.
The center also recommends that consumers make sure they have the right calling plan, without unneeded extras and unused minutes. People can also shift more talk time to nights and weekends when minutes are free and do without fancy handsets with rarely used features.
First, the Chicago freight broker switched to cheaper Internet calling through eBay's Skype, ending phone service from RCN Corp. Then he told RCN about a cheaper Internet rate from rival Comcast Corp. and asked for a better deal. He got one.
"I cut my bill down from US$80 a month to less than US$40 in all of five minutes. I just saved myself almost US$500 a year over my lunch break," said Schmidt, who has wedding bills to pay and a wife in graduate school.
Many people are looking for ways to cut the mounting costs of TV, Internet and phone services, which can take a significant chunk out of tightening monthly budgets.
There are ways to save without crimping on the entertainment and communications needs of the digital age, consumer advocates say.
TV
Pay-TV costs often account for the bulk of these expenses. On the flip side, the potential savings are great and will only increase as cable rates rise, said Ben Popken, editor of Consumerist.com, the Website where Schmidt learned about asking for a lower bill. "People are amazed at how easy it is. All you have to do is ask," Popken said.
He said consumers need to research pay-TV rates in their areas and then be persistent in calling providers, since the only thing standing in the way of a deal might be the mood of the person taking the call.
"The retention reps at these companies, their whole job is to keep you from switching," he said.
Actually switching can also bring savings as cable, satellite and phone companies offer firstyear TV discounts to steal customers from rivals.
Some cost-conscious consumers are cutting premium channels or getting rid of cable entirely. Instead, they watch combinations of over-the-air TV, shows on the Internet and DVD rentals.
"There are a lot of entertainment options out there," said Paul Eng, senior electronics editor at Consumer Reports. "You might say, 'Why do I need HBO? I can probably get some of these great movies online'."
The nation's switch to digital over-the-air broadcasts in February will also offer more high-quality
TV choices besides cable, Eng said.
Internet
The hottest marketing strategy in the telecom industry is the "bundle," packages that include Internet, phone and TV services.
Eng, of Consumer Reports, said bundles can provide savings, but they aren't for everyone and consumers should choose carefully.
"Most of the time, those deals are limited," he said. "That rate is only good for six months or a year and then it jumps up."
Some bundles make Internet service cheaper, but consumers may prefer stand-alone access in the form of "naked DSL," which comes from a phone company without calling service, Popken said.
Such service from Dallas-based AT&T Inc can range from US$20 to $45 a month.
The speeds typically are slower than cable connections or the fiber-optic services from AT&T and New York's Verizon Communications Inc.
However, naked DSL is still "a really great deal," Popken said. "That's why the cable companies will never tell you about it."
He said another option is for neighbors to split the cost of Internet service by sharing a Wi-Fi hot spot.
Phone
Many people are trimming bills by "cutting the cord," eliminating land-line phone service entirely and using only a cellphone or Internet-based calling.
"Ten years ago if this economy happened, you might have seen people canceling wireless service," said Jeff Kagan, a telecommunications analyst in Atlanta. But now, he said, "wireless service is the key. It's more important to us than wire-line service."
Even without completely cutting a land line, there are savings in getting rid of features such as call waiting.
There are also ways to save big with cellphones, according to the Telecommunications Research and Action Center.
The biggest potential savings can come from ditching contract-based wireless service and getting a prepaid phone instead, the center said. This option, which may be good for people who use less than 200 minutes a month, removes the risk of overage charges and early cancellation fees.
The center also recommends that consumers make sure they have the right calling plan, without unneeded extras and unused minutes. People can also shift more talk time to nights and weekends when minutes are free and do without fancy handsets with rarely used features.
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