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Save Your Small Business Money With Internet Phone Service

Author : Greg Anliker

Business owners can save a lot of money if they are willing to look at their monthly phone bill, and do a little online comparison shopping. Many businesses spend too much on telephone service when they don't need to, and if their telephone service and internet service are paid automatically via debit card, credit card or automatic check withdrawal, they may never even look at their bills. There is a reason that phone and internet companies want you to pay via automatic debit, credit or ACH, and that is because as long as you don't see the bill, you don't know what you're spending. And that's one of those, out of sight, out of mind, situations that can get a business in to trouble.

The first bill that you need to look at is your local phone service provider's bill. Do you use all of the lines coming into your office, and if so, how much are they costing you each month? Once you've counted them, look at the phone bill and see which features each phone line has, and then decide if all the extra phone features are worth what you're being charged for them. Business telephone lines, with local service only, can cost up to $55 per line each and every month with some carriers, and if you've got very many local phone lines, they can really cost you a lot of money.

Once you've broken down the local telephone provider's bill, look at your long distance bill and see if your long distance provider is giving you a good deal on long distance service, or whether they are an expensive long distance carrier . Also, check the long distance bill to see if there are any calls outside the US or Canada. Different long distance carriers charge different rates for domestic and international calls, so a $1.98 per minute call to Afghanistan with AT&T may only cost $0.51 per minute with a low cost company like Pioneer Telephone or Opex.

Now that you can see what you are being charged for the local landlines and for the long distance calls, look at the rest of the taxes and fees on the bill. In most areas of the US, the taxes and fees on landline phone service are 25% to 30% of the total bill. So, if your telephone bill was $100 for 2 or 3 local business lines, and $50 for domestic and international long distance calls, there might be an additional $40 to $50 in taxes and fees, for a total bill of around $200. Now let's check out some internet phone companies and see about lowering your business's telecom costs.

Internet phone service needs a fast internet connection to work, so there is going to be an additional charge for having high speed internet service coming into your office. If you don't, a basic plan with 6-12MB of service can run $40 to $100, but will usually be in the $60 range. That much bandwidth can run a lot of phones and a lot of computer apps, especially when you consider a T1 line has 23 channels, and that's only 1.5MB of bandwidth. In my office, I run 2 internet phones and 3 computers, plus pipe in Pandora for office music, all with an 8MB plan from Charter. (It's in my house, so I only pay $29.95 per month.)

Broadband phone plans themselves are cheap, costing between $19.99 and $79.95 a month, depending on who you go with. Two of the internet phone service providers offering cheap broadband calling plans are Lingo and Phonepower. Lingo offers unlimited calling to the US, Canada, and 45 other countries for $21.95 per month, while Phonepower has unlimited calling on 2 lines in the United States and Canada for $19.95 per month. Both internet calling plans come with a ton of free features like conference calling, voice mail and others, that would cost you extra from a landline phone company. And one of the best things is that the taxes a fees are only about $3.00 per line each month.

If you do the math between landline telephone service and internet phone service, broadband telephone service wins in most cases. You can get 3-4 broadband telephone lines from Phonepower for around $45 per month, including tax. Add to that the $60 for high speed internet service, and the total bill comes to around $105 instead of the $200 that landline service would cost you. And, if you figure in the fact that most businesses already have high speed internet service, the savings increase to around $155, instead of $95, per month. Any way that you look at it, VoIP phone service in this case is going to save you $1100 to $1900 per year over what you would pay for 2 or 3 landlines plus long distance service, plus taxes and fees.

For more information on saving your business money, visit and use their home phone service, internet telephone service, and cell telephone rate calculators to compare cheap long distance phone service. I know that my small business can't afford to give away $1500+ per year to the telephone companies; Can Yours?

Author's Resource Box

Greg Anliker has been a telecom agent and broker since 1997, and writes for the blogs on offers articles, news and commentary on the telecommunications industry. Visit to compare rates for conference calling plans, toll free phone service, long distance service and providers offering home and business phone services.

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Tags:   voip phone service, cheap phone service, business phone service, internet phone service, voip, phone, service

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Submitted : 2011-03-23    Word Count : 921    Times Viewed: 509