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Unlimited Phone Plans

Virtually all of the companies that provide telephone services now offer unlimited phone plans. Since they were first launched at the turn of the century, these popular plans have slowly changed the way most consumers purchase regular phone service.

The scramble among telecommunications companies to provide unlimited phone plans to their customers marked the intensification of competition in the industry. There may be many instances, usually in the case of heavy callers, when unlimited phone plans can spell some losses on long-distance revenue to the telephone carriers. But the carriers believe this is more than offset by their ability to retain the customers and to persuade customers to pay for additional services.

With the emergence of more competitors in the industry, it has become common for customers to switch their phone carriers frequently in the hunt for the best deal. This frequent switching results in a huge cost to the telephone carriers. A research study on the behavior of households indicates that 8 percent change local carriers often and 10 percent of long distance services. Yet, phone companies may spend at least $100 or higher just to win a single customer.

The telecommunications companies have found that the best way to keep the customer is to bundle all services that the customer wants, such as video (cable), data (high-speed Internet), and voice (telephone). One reason why customers would stick to the phone companies is that it is much more difficult to change multiple services. Many consumers prefer to cut only one check to pay for such services, and part of these services would be unlimited phone plans.

But if you have unlimited phone plans you should be careful to know the advantages and how you can make it work for you. For instance, you may want to ask yourself if the expense involved in unlimited phone plans is justified. You will have to review your phone habits and work out the numbers.

Unlimited phone plans come in several forms. There are plans that offer local and long distance service together as a bundle. Other unlimited phone plans may be only for long distance calling. Or, there may be plans meant for local service but includes limited minutes for long distance calling. You must match the unlimited phone plans that are out there with your calling requirements. Still others will bundle video service with local and long-distance phone services.

Once you have an idea of your needs, you can do the calculations. For instance the average household consumes 110 long-distance minutes monthly. Normally, the cost of long distance calls is 7 cents per minute, so households would spend $7.70 monthly, plus taxes and some other charges. But unlimited phone plans may cost much more, say $50, which means the subscriber would have to really do a lot of calling to gain from such unlimited phone plans.

frank j vanderlugt owns and operates http://www.chicago-phone-service.com 2 Chicagophoneservicecom

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