Cellphone Economics Revisited: One Year In

Last year I devised a plan to save myself a ton of money by revising my cellphone service. I was paying $576 per year (including taxes) for a mediocre cell plan from AT&T. I’m happy to report that my plan has been a fantastic success. Using this plan, I managed to pay $188.56 (including taxes) for my phone service for the entire year. That includes $162.01 for 1500 prepaid cellphone minutes and $26.55 for a 1-year Skype subscription. The Skype subscription is really the key here. I made a 30 to 60-minute phone call on average of 4 nights/week, every week for a year, for $26 total. That’s pretty amazing. Otherwise, I would have been using about 720 minutes/month to talk to Sadie on my cell every night, in which case talking to her with a regular phone plan including “free” nights and weekends would have been cheaper.

With my heavy reliance on Skype, you’re probably wondering what the service is like. To be honest, it’s better than I expected. I very rarely had a dropped call, and for the most part the sound quality was quite clear. Sadie even told me that she was impressed with the call quality, saying it sounded just as good as if I were calling from a cell.

http://www.flickr.com/photos/nichollsphotos/2906834393/

CC-NC-ND: Jason Nicholls

Were there any downsides to using Skype? Only a few minor ones, some of which I had predicted. Unless you sign up for a SkypeIn online number ($30/year), when you call someone who has Caller ID, your number shows up as something crazy (like 0001123456789), and it’s always different. This scared a lot people who weren’t used to it, since they had no idea who was calling. Sometimes my mom still screens my calls with the answering machine. I could have also gotten around this by buying some Skype Credit, which can be used to disguise Skype calls as ones coming from my cell number. I need the credit in order to send and receive a text message from Skype to my cell to verify the number. I would have done this long ago, but unfortunately the lowest amount of Credit you can buy is $10. I would have had $9.80 worth of Credit still sitting in my account. I decided to save my money and live with the inconvenience for the time being. I also had an issue with poor call quality using my Skype-to-Go calling card, but it significantly improved at some point last Fall.

As serendipity would have it, Google Voice also launched last year. I linked my new Google Voice number to my cell number so that I can give out my Google Voice number and it will ring my cell. Then, if I ever decide to buy a SkypeIn online number, I can tell Google Voice to ring my cell and my computer when someone is calling.

So what is my plan for the future? At least for the next year, I plan to keep doing what I’m doing. I may splurge and buy a SkypeIn number and hook it up to Google Voice. It would not only stop the Caller ID problem I mentioned, but it would also allow me to receive phone calls on my computer, which would be a big help. I would say that at least half of my cellphone minutes are used because someone is calling my phone, and I can’t answer it on Skype. The only thing keeping me from doing that right away is the rumor that Google Voice is soon going to become a desktop VOIP provider and thus a direct Skype competitor. If they can offer competitive rates to Skype, I may have little reason not to use them. Of course, Skype is likely announcing an open-source client, which would be fantastic. Then it will be a battle to see who provides the best quality service, the best price, and the best open-source/Linux compatible platform. It’s shaping up to be quite a year!

On a related note, LifeHacker picked up this topic today. As I posted in their comments: Every time that I have the urge to get a smart phone, I cringe at how much more it’ll cost me every year for features that I don’t even need, and I quickly remember why I don’t already have one :)

2 thoughts on “Cellphone Economics Revisited: One Year In

  1. Sadie I hope you have a Net10 phone like my kids do so that Jonathan is only using up your airtime at 10c per minute! Don’t you guys text….my kids have phones grafted to their thumbs…luckily at 5c per text or I would have hysterics!!

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