How to Cut the Beastly Cost of Digital Services

IF there was ever a time not to procrastinate, that time is now.

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Illustration by Phil Marden

 

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With the economy in poor shape, and many Americans pulling back on their spending for fear of what tomorrow (or even this afternoon) will bring, now is not the time to assume that the cost of some of your entertainment and communication expenses are set in stone.

I found that out the hard way recently when I wondered if I could pare my expenses. Off in the corner of my desk sat a forlorn fax machine. Once humming with activity, it had been quiet for most of the last three years, except for the occasional times it spit out an ad for a fake vacation or bogus health care plan. I gave it little thought. That was the problem.

I canceled the faxs rarely used, but just as rarely noticed, phone line and cut my monthly expenses by $30.

Bitten with the savings bug, I went on a rampage, poring over every bill in sight. Next on the chopping block: a third-party long-distance service once offered through Costco that was cheap at the time, but was now costing me much more than an all-in-one phone plan. I rejiggered my telephone plan, originally ordered 15 years ago, to now include unlimited local and long distance. Total savings: another $32 a month.

Seeing our newfound cash flow, my wife asked me to examine her businesss phone bills. We removed a separate long-distance plan in favor of an all-in-one service and saved $20 a month. For those keeping score, thats $82 a month so far.

With just a few hours of work, it became clear that it was possible to save hundreds of dollars, even thousands a year without decreasing the level of services we already received.

Here are some more tips on how to do the same.

DONT ASK, DONT TELL Cable, satellite and telephone companies can only be overjoyed that millions of their customers take no action to lower their bills, and instead routinely pay much too much for overpriced plans they purchased a decade ago.

Faced with increased competition, they will gladly tell you about better package prices if you ask, but they wont be calling you up to tell you how you can save money.

Pull out your bills and then call all your providers. Tell them youre paying too much and you want to lower your bill. They can only say no.

IF THEY SAY NO, THREATEN TO SWITCH As in a teenage romance, your digital providers seem to care about you only when youre about to break up. If youre thinking about switching to another satellite, cable or phone provider, call your current one and let it know.

And remember this: The regular customer service representative wont be as empowered as someone in the cancellation department to cut you a better deal.

We will work with our customers to find a package that suits them, said Bill Kula, a Verizon spokesman.

At their discretion, Verizon sales reps can cut the price of DSL service, offer free months of Internet access, increase the discount on voice service or give a $50 American Express gift card to customers returning to Verizons television service.

AT&T gives its employees similar powers to make deals. Reps are known to offer enhanced services for a basic price, and to lower the cost of one service to its bundled price even if youre not buying the bundle. If its a matter of keeping the customer, well do the best we can, said Fletcher Cook, an AT&T spokesman.

Satellite and cable companies are also quick to make deals once you tell them youre thinking of bolting. Receiving discounted service, months of free pay TV or low or no-cost DVRs is common.

BUNDLE YOUR SERVICES With traditional landline ownership dwindling as more customers use only cellphones, the major phone and cable companies are chockablock with packages intended to keep you from straying. AT&T, for example, offers local and unlimited long distance for $40.

That price drops to $35 if you also get wireless (but you must tell the company to combine your bills). A $99 package includes unlimited landline service, a DSL connection and wireless service for $10 less than those services would cost if priced separately. The company will also pay new customers $100 to sign up.

Verizon offers a package of unlimited local and long distance via landline, DSL and 150 channels of DirecTV starting at $80. Unlimited landline voice calling and DSL are $50 a month; depending on the plan, new customers can receive a $125 to $175 rebate.

The cable companies have similar packages. For example, Comcast is reducing the price of some of its HD packages by $15 to $20 for the first year. And Time Warner is cutting the package price for its cable, DSL and phone service by $20 a month for one year in some regions.

RECONSIDER THIRD-PARTY CARRIERS Once, third-party long-distance companies offered cheaper long-distance calling than you could get from your local provider, but that might no longer be the case. Some, like the dial-around service 101-6868 and the prepaid PennyTalk, charge low rates for each minute to Europe and North America, but thats only half the story.

They play down the fact that they tack on an additional 39 to 49 cents a call for a connection charge, raising the real rate substantially.

Similarly, Internet calling services that allow you to use your traditional home telephone may not save you money.

For instance, Vonage charges $25 a month for unlimited local and domestic long distance and free calls to five European countries. But the service still requires a DSL or cable modem connection. And because that service will not be part of a voice bundle, you may wind up paying the same or more than another phone company would charge if you went with one of its packaged deals.

ASK FOR CORPORATE DISCOUNTS Many corporations have discounts with the major wireless phone carriers. Bring your corporate business card to a wireless carriers store or check your companys intranet site for particulars. Depending on the company, you can typically knock $10 off the monthly cost for a smartphones voice and data plans.

MONITOR WEB SITES FOR DEALS Several Web site discussion boards trade secrets on the latest deals and how to get them. For cable and satellite, try AVS Forum (www.avsforum.com) and Satellite Guys (www.satelliteguys.us). Wireless deals can also be found at Fat Wallet (www.fatwallet.com).

IF ALL ELSE FAILS, DOWNGRADE Do you really need hundreds of TV channels? If not, get rid of cable or satellite, and watch free digital and HD broadcast TV with an antenna. Send faxes from your computer. Cancel your landline and use only your cellphone; if you keep within your allotted minutes you can call anywhere in the United States for no extra charge. And when times get better, you can always add back services one by one. You might actually find that an essential service wasnt needed after all.