Alternatives to Telephone Land Line

POTS (Plain Old Telephone Service) has been the main stay of communication in our homes for many decades. And despite the upgrade from using live telephone operators (does anyone remember that?) to mechanical switchboards to the current digital switchboards and telephones, the principle had remained relatively the same. Your telephone basically ran a telephone line from their switches to your home.

The arrival of cellphones is, for many people, a viable alternative to maintaining a POTS at home. Most of the younger folks I assume are comfortable enough not having. I am not one of those. I still long for the security of having an actual phone tethered to a wall socket, that I will not leave somewhere in the Mall and get washed with my dirty clothes. What I did not want was the cost associated with this lines.

The internet and the development of Voip (Voice over Internet Protocol) telephony has made it possible for alternative to POTS. Voip, which allows the transmission and reception of voice over the internet has improved greatly since I first tried it out years ago. My first experience with Voip was not very good. The latency (time between the moment a voice packet is transmitted and the moment it reaches its destination ) and the echo was so bad I compared it to using CB radios with only one person talking while the other listened. My next attempt was to use the then popular AIM (AOL Instant messaging) and Skype. Unfortunately until the networks got fast enough, the delays and echos were still bad. In addition, the computer actually had to be on, and somehow, the party I was trying to call also had to be logged on.

Vonage was the first service I tried that showed me that it was possible to get rid of my POTS. I did find it to be a bit expensive at the time (I think I paid $24.99 for 500 mins) and, since it practically cost the same as my POTS, I decided against continuing the service. But I thought it to be a good start. I eventually progressed to Sunrocket and was happy with their service (despite the occasional bad audio quality) up until the time they filed for bankruptcy.

I then tried MagicJack. The earlier version of MagicJack required the use of a PC to make calls, and this could be an issue. So I decided to experiment. I left my PC on for 3 days to see if it could, in essence, replace my land line. But for some reason the MagicJack would always shutdown. I decided it too was not ready for prime time. I eventually switched to ITP and have been very satisfied with it. But I do continue to look for cheaper alternatives and I have now heard that MagicJack Plus does not require a computer to work, just plug it into your router. And you can now even port your old phone number, wow! I am planning on giving this new MagicJack a try as the prospect of paying only $19.95 / year vs ITP $15.95 / month is too good to pass on. If everything works well, then maybe I will go as far as actually port my current phone number.

A Voip service I have not tried is Ooma. The premise behind this is that you pay for the unit in full, then pay whatever taxes and fees a regular POTS would cost but then be able to make free local and long distant calls, for life! State fees as of Nov 2011, amount to about $3.50/month in the state of Maryland. The catch of course is that you pay upfront since the unit costs up to $200 for the base unit. A concern I have is with the voice quality and the companies staying power. Ooma works very much like Skype in that it depends on a peer-to-peer network to operate. So as more and more people use the service, there is a need for faster internet connection between hubs. What happens when there are just too many users? Would the voice quality degrade? As far as the stability of the company is concerned, would they reach a point where there unit sales aren't growing anymore because those who want to use the service already have their own units? It seems to me at that point that they would either close shop or start charging something, somewhere. Perhaps they already do. In any case, if you do the math. If Ooma closes down 10 months after you buy and start their service, you probably would have broken even, already. After 10 months it is all savings.

How about Google Voice? At the moment Google Voice isn't a phone service. I do use it manage calls rather than to make calls. There are ways to make free US calls through Google Voice but at the moment, I do not find it to be worth the hassle.

One question some people may be asking is whether there were any services that are given up when you switch from the POTS to Voip. In most cases, there are none. Caller ID, voice mail or call waiting are, for the most part, tossed in for free. I actually had to pay for these services when I was still using POTS. So, the whole point here is that even for those who do not want to give up their landlines, there is hope. Voip services are now just as clear as the traditional telephone and can be substantially cheaper if you are willing to experiment to find a service that works for you.

Cellphone Plans

Almost every person I know owns a cellphone. Quite a few have made this into their only means of conversing with people and therefore spend a lot of time on the phone. So why do you need to keep that land line then? Why indeed. A number of people (including a relative of mine) has made the jump, saved themselves a bundle by getting rid of their old telephone lines in favor of their trusty cellphone. Of course, there are advantages and disadvantages. Making emergency 911 calls can be a little tricky without a land line, and dropped calls is certain to be an issue. Then there are the times you just want to have a long chat with your inner circle of friends, how much is that going to cost you? Fortunately there are some options available.



Or you can all decide to use the same carrier and take advantage of the free mobile-to-mobile plan being offered by most US carriers. This isn't too difficult now a days since phone numbers can be ported, allowing you to keep your old number. Just be certain that you do not have any contracts that may impose a hefty penalty for switching before the end of the contract period. Another option available for you if you (or your friends) cannot live without your current carrier. Some carrier offers plans that allow you to make unlimited calls to a set of phone numbers if you purchase a minimum plan amount and register the phone numbers you intend to call, usually up to a total of 10. Below are two of the most popular cellphone plans for you and your friends.




Verizon Friends and Family (As of Nov. 11, 2011)
Stay in touch with the people you call most – without using your minutes. Add up to 5 or 10 people on any mobile network or landlines.

Sprints Any mobile, Anytime (As of Nov. 11, 2011)
Unlimited domestic class from the Sprint network to AND from any US mobile phone, regardless of carrier. Any network, Anytime

Unfortunately, as of this writing, it appears that AT&T and T-Mobile no longer have plans that compete with the offerings from Verizon or Sprint.

Ditch those Bank fees by switching to a Credit Union

Bank fees on everything, from loan fees to the cost of maintaining an account are typically higher than their Credit Union equivalent. For example, some banks require you to maintain at least $5,000.00 in your account or you are charged a monthly maintenance fee. Credit Unions typically require $5.00. See the difference?

If you decide to switch from your bank, I do have a couple of suggestions that have worked for me.

1. Do not start off by closing your bank account. Like most of us, you probably have your direct deposit salary deposits, automatic payments and debit setup and running smoothly.
2. Leave enough funds in your bank account to cover at least a couple of weeks payments. Depending on how meticulous you are at maintaining a record of all those payments, you may find that you could leave less.
3. Open your credit union account.
4. Transfer your direct deposit, automatic payments and debit to your new credit union account.
5. Check your bank account for the next month to make sure nothing unexpected gets debited from the account.
6. If everything looks goo, then close your bank account. You have now fully transferred to your Credit Union.

To find out more about Credit Unions or to find a Credit Union to join, visit www.CUNA.org. To compare bank and credit union rates , you can also try Creditunion.coop.

Now will Credit Unions be always better for you? Chances are no. Depending on your situation, there are just things that a big bank would turn out to be a better choice. But for all those other services that a typical household would need, a Credit Union is a better choice. I've been using one for over 14 years and have not yet regretted it.