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Article - 3 tips to save money on your home phone

1. Choose your line rental plan carefully - Most people end up choosing the standard line rental plan offered by the phone company. But you need to be more proactive with the home phone plan that you choose as this determines your phone bill at the end of the month. For example you could choose between a standard line rental ($29.95) in Australia & this line rental offers standard rates or you could choose a cheaper line rental plan ($19.95 per month) as long as you make at least $20 of calls every month. This works out at nearly a 30% saving on the line rental component of your phone bill. Another option available for people who use the home phone frequently is choosing a plan with "No line rental component". A number of phone companies in Australia provide this option. Therefore as long as the customer is willing to commit to a minimum amount of monthly spend on phone calls (approximately $59 per month of phone calls) they can end up saving the entire amount they spend on the line rental component of the phone bill (which is essentially dead money).

2. Research the market before choosing your home phone provider - This is the most common mistake customers make. There are a number of phone service providers available, for example, in Australia people have a choice of using Telstra, Soul, Optus, Primus, AAPT and a number of smaller service providers for their home phone service. However, since Telstra is the default phone company therefore most people end up connecting their service with Telstra without doing their research and therefore end up paying a substantial premium on their phone bill.

3. Landline Handset Rentals - Don't pay extra monthly charges to rent a handset from your phone company, instead purchase your own handset and you will save a lot of money. In Australia a lot of customers prefer to rent their landline phone handset from Telstra & this must be a huge revenue earner for Telstra. They charge $3 to $6 per month per handset that a customer rents from Telstra. That is an average of $4.50 per month. I know of a lot of customers who have been renting a handset of Telstra for 10 years. For example, Handset rental $4.50 *12 months= $54 per year.

You can purchase a brand new handset for as low as $20 these days, why would you pay $54 a year to Telstra? And for the people out there who have rented a handset for 10 years, you have just given Telstra $540 for something that you could have bought for $20. Get on the phone right now & return the handsets.

Tip- Make sure when you return the handset that you get a receipt for returning the handset.

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