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CONSUMER TIPS FOR CUTTING THE CORD ON YOUR PHONE SERVICE

Switching to Discount or Cheap Cellular Service as Your Primary Phone Service.

Millions of consumers have wireless telephones and are beginning to ask the question: Why not "cut the cord" and get rid of my regular local phone company service? According to a new survey by the Yankee group, 2% of all U.S. wireless customers actually have "cut the cord" and many more are considering whether to make their discount cellular service their only phone.

The cost of discount cellular service continues to drop at dramatic rates. New calling plans that do away with roaming charges and include long distance charges are becoming the standard offering for most digital services. At the same time, local telephone service is becoming more expensive for consumers who use a lot of the so-called optional services, such as call waiting, caller ID, voice mail, call forwarding and the like.

It now may pay consumers to take a look at whether they should "cut the cord." Here are some tips to help you make that decision:

1. USE THE CELLULAR AS YOUR FIRST LINE if like many consumers you have or are considering a "second line" for your computer. Consider instead keeping the line you have for your computer, and switching to cheap wireless for your voice calls. You might find this a cost-effective strategy because the computer line doesn't need all the add-on services, and those services come with digital wireless.

2. CHECK THE COST OF GOING CELLULAR, IT MIGHT PAY. It might pay to go wireless for some consumers. Wireless digital phones come today with Caller ID, Call Waiting, Call Forwarding, Three Way Calling and Voice Mail built in. Local phone companies charge for these services. If you are not a heavy user of local calling and you like the extra services, you might find that you could actually save money by switching to wireless.

Many people who already have discount cellular service are the best candidates for cord cutting. They can save immediately the fixed costs of their local service. If they are on the right wireless plan, they can save also on the long distance costs. The real test is whether the calling plan of the wireless company provides sufficient minutes of usage to cover your needs.

3. CELLULAR GIVES YOU MOBILITY. One of the major benefits of a wireless phone is it goes with you wherever you are. Even if it is a bit more expensive, consumers might be willing to pay for the mobility of getting all their calls on one number wherever they may be.

4. CELLULAR GIVES YOU PRIVACY. With wireless, your phone number is not listed. Caller ID is a standard, free feature with most calling plans, so you can talk to the people you want to when you want. You also get voice mail, so that you accept calls only when you want to. And when all else fails, you can always turn your phone off.

CAUTIONS

There are a number of important risks associated with going "cellular." Here are some of the most important considerations:

1. MAKE SURE YOU HAVE COVERAGE EVERY WHERE IN YOUR HOME: If you are going to have a wireless phone as your only home phone, it needs to work every where in your home. It is possible, if not likely, that wireless phones won't work in basements or other interior rooms, depending on where you live and the construction of your home. Test out the phone in every room you expect to use it and make sure the coverage is adequate before cord cutting.

2. WATCH OUT FOR THE PER-MINUTE OVERAGES: The biggest question is whether you will end up paying high per-minute rates since cellular plans charge per-minute. Even if you get a "package" that includes 200 minutes a month for a fixed low price, if you speak more than the 200 minutes you will be charged a hefty per-minute rate for calls over the 200 minutes. You need to fit the profile for your calling plan for this to work

Cord Cutters:

• Young adults living alone or in group houses. You get your own phone. You are out most often and away from home. You make many of your chatty calls from work. And you can sign up for a cellular plan that gives unlimited night and weekend calling! No phone bill splitting, either, especially in groups houses.
• Empty Nesters: Kids are gone, both adults work long hours and are always on the go. Indeed, very little calling is done from home any way.
• Second Line Users: Don't get a second line, use your wireless for voice. You can always share the out going calls with your wireline when you are not on the computer.

Don't Cut the Cord:

• Teenagers in the House: If you have teenagers in the home, you know you can't afford a cellular phone. They just talk too much. But many families think about getting second and third lines for teens and for computers. A cellular phone might well substitute for one of those landlines.
• High Volume Users: If you do a lot of talking for whatever reason, you probably are not a candidate to "cut the cord." Many highly social and active people spend long hours on the phone every day. For these people, the wireless phone will be just too expensive in most cases.
• Seniors. Wireless phones bill by the minute. Many seniors, including those who don't call a lot, are concerned about the per-minutes system, and would find that a deterrent from making important phone calls.
• Work at Home People. While cellualr gives you mobility, you will find that the rates are such that you will probably end up paying more because you are on the phone a lot. In addition, today, wireless phone numbers cannot be listed in either the white pages or the yellow pages (without paying for an advertisement).

STAY INFORMED

There continue to be major changes in regular and wireless phone service. Some phone companies are testing out new plans and technology for "fixed wireless" service from your home. Rates keep falling for wireless services. And pricing for regular service is continuing to change. For example, today people pay $3.50 a month for a federally mandated subscriber line charge, in addition to their local rates. Wireless companies do not charge that same fee.