Hang up on your landline

Yahoo!7 Moneyhound Updated February 20, 2012, 11:07 am

Is it time to cut this unnecessary cost to help trim the fat off your household budget?

There are still 10 million landline connections in Australia but that number is decreasing every year. Moneyhound asks, is it time to hang up on your landline?

There are many reasons you may want to think about getting rid of your landline:

Expensive rental fees and charges. The main gripe most people have about their landline is the line rental fee. It’s usually somewhere in the vicinity of $30 per month of dead money. Then, if you’re moving house, there are usually connection fees as well, which is why many in the 13-35 demographic have never bothered having a landline connected after leaving home.
You hardly ever use it and the only people whoever call you on the landline are elderly relatives or cold call salespeople.
You have a huge monthly cap that you never even come close to reaching so you predominantly use your mobile.
You don't know your friends numbers off hand, they are stored in your mobile phone so its easier and sometimes cheaper to call from your mobile

More from Moneyhound: Unlimited mobile phone plans - our top 5 picks

Here are some cost effective alternatives to your landline:

Capped mobile plans

Mobile phone pricing plans are highly competitive in terms of call caps, and text and data allowances. If you have a plan with unlimited text and talk to mobiles, (make sure it includes mobile, local and long distance numbers) you most likely have very little need for the extra cost your landline incurs. Save on your mobile bill by using Moneyhound’s mobile phone plan comparison tool

Bundle your home phone and internet

If you are still attached to your landline and aren’t ready to make the break yet, bundling your landline with your broadband can save you money. Check out the great range of broadband bundles available using Moneyhound's broadband comparison tool

Use Skype or VoIP for international calls

If your mobile plan doesn’t provide economical rates for international calls, consider using Skype. It’s free and easy to download on to your computer and has the added benefit of allowing you to see the person you are talking to. As long as the receiver has too you can talk for as long as you like for nothing, making it a great way to stay in touch with friends and family overseas. Alternatively you can down load the Skype app or Viber app onto your smartphone and talk over via the internet on your phone instead of on your PC.

Then there’s VoIP (voice operated internet protocol), which allows you to use the internet to make phone calls. You will still require a traditional landline handset, but instead of plugging the cable into the phone socket, you will connect to a VoIP enabled modem or router. Your VoIP provider will give you a new landline phone number which people can call you on. VoIP calls are much cheaper than traditional telco charges and if you are calling VoIP to VoIP, your call will often be free.

International calls are typically charged in increments of cents per minute and most providers also offer unlimited calling plans to selected countries. Better yet, you are also set up with a free voicemail box that sends an email alert each time a message is left. Other features include caller ID, caller blocking and call diversions.

Related story from Today Tonight: Farewell to home phones

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