Is This Really that Great of a Savings?

US News tells the story of a guy who saved $30 a month on his cable bill. I thought this would be an interesting and useful piece, so I clicked through to it when I saw it on my feedreader. Then I saw the details as follows:

• He was paying over $200 a month for digital cable, high-speed internet, and Comcast digital voice.

• He told Comcast that he never used the digital voice service and wanted to cancel it.

• Comcast called him and reduced his bill to $170.69 with a rate that's good for a year.

The piece touts how he's saving a bundle just for sending them one simple email. But here's my take on the situation:

• Yes, kudos to him for lowering his bill. $170 a month is better than $200 a month.

• $170 a month????!!!! Is he crazy? He pays over $2k a year for phone, internet, and cable? Ouch! Of course, it's his money to spend, but this seems like an excessively high amount. Does he really get $170 a month of value out of these services?

We pay less than $60 a month for unlimited phone and high-speed DSL. The web speed is half of what cable is, so there is some difference there. Plus we don't have cable, though we could get a good number of channels for $40 a month and still be way below what he spends.

Just seems like he's over-paying to me. Maybe he should instead focus on what he really wants and see if he can get it for less -- or even compromise a bit (do you really need 500 channels) and save a huge amount of money that way.

Anyone else have this feeling? 

Comments

[chynalemay]

I'm constantly amazed by what people pay for tv, phone, I-net,by thinking the local cable co is the only option. Here in the Portland OR area, a $39 antenna gets you 25 FREE digital channels,4 spanish channels, etc., that include "cable like channels" w: all movies, weather, sports channels, etc., too. I rarely use a phone but T-Mobile, Cricket, etc., have plans (I use the T Mobile) that gives reasonable minutes, ability to text/photo and w/ all the taxes, just $37 a month (why even have a land line? or for those folks who must, skip the celll phone and get basic local phone for about $15~ a month!, and or Internet: Cricket or Clearwire can give you WIRELESS access for either co for about $40 a month. Faster speed costs a bit more, still, cable TV is a rip off (the pic iis horrible, being compressed and not in HD compared to over the air in most metro areas). Ultra high speed Internet is "standard" in Europe at about 1/3~ our costs, what is the problem here in the US with that??? So many ways to save money around the house, my T stat is set too 65'f when I'm home and 60'F at night and out, my gas hot water to 115F, (I use the gas fireplace in evenings to get my living area 68'F). My electric averages $1~ a day, heat is $750 a YEAR....

[Crystal Groves]

I pay $110 with comcast for cable + internet + phone because I ask to be on their specials. He should do that too, he's getting scammed out of his money. So really I pay about the same as you would if you had cable as well.

[mike j]

I switched from Cable/Internet/Phone with Cablevision plus mobile phone with Verizon at a total of 209/month to Internet with Cablevision and mobile phone with T-Mobile (the G1 with unlimited data package) for a total of 133/month. I needed a local area code phone number because the intercom on my building has to dial a local phone. So that's $76/month there.

I got an indoor HDTV antenna but I'm in the bottom floor of my building and can only get 2 subchannels of 1 channel. BUT, the few shows that I always watched week in, week out are available on the networks' websites for free viewing with only one exception. If I absolutely HAVE to watch a sports broadcast, I can catch it at the bar or a friend's house.

-Mike J

[moneychallenge]

I totally agree with you about figuring out what you really want first, then trying to get it for less. Most of us tend to do the opposite: "ooo it's on sale! let's get it!"

[Uri]

After examining all reasonable daycare centers in the area, I visited the cheapest one and asked if they had a discount. She initially said no but 10 min later she said she liked the idea and gave us 10% off. One question and 10 minutes later I'm saving ~$2k/year!

Less interesting but more topical, when I signed up for Comcast I simply asked "can you give me the DVR for free?" The CSR then offered me a promotion. I didn't have a reason to think that such a promotion existed and I wasn't offered it until I asked if any promotions exist. When the promotional period expires, I plan on calling them up and asking if they'll let me keep it for free and I think they'll actually give it to me! It will be interesting to see how long I can get away with this.

The lesson to learn here is that while I'd never walk up to a stranger and ask them for money, you can ask businesses for money, even if you have no rational reason for expecting it, and they'll often just give it to you. Not clear that it's bad for the businesses either because then they only have to compete on price for customers who are concerned about price.

[Uri]

I forgot to mention that at the daycare center I asked for a *student* discount.

[CentsInTheCity]

I called Time Warner retention department a few months ago asking questions about cancelling. They lowered my bill by $30/month for a total cost of just under $100/month for high speed internet, cable, and a DVR box. The call took under 15 minutes of my time and was extremely easy to do.

[My Life ROI]

Saving 15% is like his cable company throwing him a bone.

I pay $28/mo for hi-speed internet (6 megabit), $48/mo for cell phone w/ texting, and I don't have cable because I use other means to watch television shows on my TV (all legal).

[Jim]

Is spending $170 "crazy"? no. $170 is what we choose to spend. Average Americans probably spend around $120-150. $40 for phone, $60-70 for cable, $20-40 for internet.

I could cut our bill down to $60 if I dropped cable and downgraded internet. But we choose to spend more since what we're getting is important to us and we can afford it. What we're spending is certainly not frugal but its a choice since we value it.

We have cable since its the only source to see our favorite sports team. We throw in HBO and an HD DVR and the total is $90. We have a landline phone since its required for our security system. Plus our cell phones reception isn't very good or dependable at our home. We choose to have higher speed fiber internet since its 10 times as fast as DSL in our location.

We have Comcast and I've negotiated discount with them once already. I'll do so again next time our discount is up.

[FMF]

Jim --

Where are you getting those "average" numbers?

[Angie]

I don't think those numbers are that out of whack. On average over the year I'd say my cable and internet bill is $155. No phone, regular cable internet. I subscribe to movie channels (cancel when my shows are completed) and get the baseball Extra Innings package ($170/year). I call for specials but now they are begining to ask for a commitment requirement of a year.

An extra $60 a month is not that much when you think about entertainment value. If I watch 1 or 2 movies a month at home, that's saving me $15-$25 on movie tickets.

If you have significantly less cable, you could take up hobbies to fill the time instead. Most hobbies I can think of would easily end up costing more then that extra $.

[Maria]

We have FIOS, it runs us $120 per month for high speed internet, digital TV-no premium channels, and home phone. I don't personally care for Verizon. They have terrible customer service, but I'm married to a techo-wiz who can't do without the fiber optic internet. I use cable and DSL at work and don't see much of a difference, but his "furgality" only goes so far, and saving money on this ain't it. I have seen alot of alternatives lately, one system at Cosco for $200, which creates your own internet phone line with no monthly bills, another called skip jack for approx $40 per year. If you just have a cell you can skip home phone svc.
There are tons of deals on TV so total cost can be below $100 with out much compromise. $170 seems high but saving 15% isn't bad either.
Maria

[daub815]

Some people don't get the luxury of choosing their internet providers. I can only get comcast. I tried verizon dsl, but it is too far away from my apartment complex to get reliable service. If they installed Fios, I would have it in a heart beat. However, I pay $60 a month for basic cable and internet. It would be only $50 for internet, but you get a discount if you get basic cable ($20). The numbers are high, but some people like TV.

[DW]

FMF, from some of these responses, I think you touched a nerve. ;)

All told, we pay about $105 per month for landline, DSL and satellite TV. Don't need or want the movie channels or on-demand services. We had Comcast, but the service was lousy and the price kept going up, so we ditched it.

[Luke]

$170 a month is too rich for me, though I do without Cable television. I pay for my Comcast cable internet a year at a time to get one month free, so my total for cable internet and VOIP phone service is about $55 monthly. I'm sure the CSR's don't talk about paying for a year at once, but I would assume it is still available. I've been paying the same amount since 2000.

[Jim]

"Where are you getting those "average" numbers?"

Part data, part guessing. Note I'm talking amount spent IF you buy all 3 services. Of course not all of us buy the services.

$40 for home phone is roughly from published info from BLS.gov. Census site also says average annual land line telephone spending was $542 in 2006 which is ~$45/month.
I found one reference on the net to cable average at $60. Census info states basic cable service is around $45 average but theres also taxes and people pay for premium services.

I can't find much of any data on average internet service bill costs. $20-$40 was basically a guesstimate on my part. I am assuming high speed internet.

I do think $170 is high. But I think $120-$150 is realistic avearge spent for all those services IF you buy all of them.

[chynalemay]

...you can watch "tv" via your laptop (HDMI cable to your tv makes the tv a 2nd monitor/big screen)using HULA, MLB.com, etc., etc., (so pay annually for sports is a lot cheaper than cable w/ premium sports package)so I can't figure unless you are impared by distance/reception why (?) anyone would want to pay for cable?? Most metro areas have over 20+ digital stations - so the pic/sound is better than cable and FREE! Get a high quality rof / antenna mount, correctly oriented (tvfool.com or antennaweb.org) antenna and installation and go for it. Wired phone? Get a magic jack and for about $2 a MONTH your pc is a phone, or get a cell phone (low users will love the prepaid plans now, phone for $10~ a month!), a heavy user can get unlimited use nationwide for $50! Internet access is trickier, unless you are in 7%~ of US that has 2 providers to compete, still DSL equivalent can be had for woreless at about $40~ a month and cable/wired high speed (OR Clear/Clearwire) is as/cheaper, pay $70-$100-$150-$200 for cable/tv/phone NO WAY, so many alternatives are cheaper or free! HEr in Portland area for example, free Over the air tv has all weather, movies, sports, old show channels pus the networks, shopping channels etc., Cricket/Clear/T-Mobile have phone/intenet for as little as $20 a month!Can't see thousands of dollars a year to "connect" when hundreds will do!

[Al Howard]

As a VERY biased Comcast employee I'd like to put in a couple of points.
A land line phone gives one E911 service. A cell DOES NOT!!!!!! It you have any emergancy, a land line call to 911 flashes your address on the call center's screen, and they will respond, even if the connection is broken.
As to internet, DSL is not only slow, but in most areas unstable.
Now to 'CABLE".
With so many of us staying home, rather than going out to movies, plays, or sporting events, cable is a very inexpensive choice. Most of us spend more than $6.00 per day on lunch, coffees, sodas, etc. A $180 bill for a triple play is only that.. $6.00/day.
I know I'm biased, but run those numbers.

[chynalemay]

Most of "us" do not spend $6 A DAY on "etc.",...I don't spend $6 a MONTH on that stuff! My OTA pic is FAR superior to the comcast cable I see my neighbor has, and we watch mostly the same channels, ABC, CBS, NBC, Fox, ...me "in HD (OTA) for free", her: pays for non HD quality...cable would be "ok f you could "pay be the channel" for ONLY the channels you want, otherwise $6 a month for netflix and Redbox videos at $1 each can be had in mass quantity before the same amount is spent on cable! Try Clear/Clearwire and/or Cricket/Metro for internet/cell phone, cheaper yes butr,I ADMIT, SLOWER THAN CABLE INET...

AS FOR 911: I held AN Intruder at gunpoint (ignore dog with teeth and nails, BEWARE OF OWNER armed w/ 38+P and 20 gauge short barrel shotgun!) and police were here in 115 SEONDS and knew my location fine! I've called 911 from my cell on the higway fine too....

[-ss]

I think that the price all depends on what you enjoy doing. If you like movies a lot than paying $170 might make sense.

I pay extra for a higher speed fiber line because of lots of large uploads/download and it makes skype work better for international calls. And it's also great for internet gaming.

So it's really just where you want to spend your money.

[Ray]

That is just crazy!!! I currently pay about $300 for 3 cell phone bills (including one with data plan iPhone) digital cable with PVR and home phone. I have all three services with one provider giving me 15% discount.

[Lynn]

No way....his bill is super expensive. I pay $29.99 for Comcast high speed internet. It began as a 6 mo introductory promotion (regular price $54.99, a month before it was over I called to see if it could be extended. The first rep I talked to said no, the second said it was too early to consider and gave me a date to call back. I marked it on my calendar, called back and got it extended for a year w/o any problems.

Also, I pay $60 a month (taxes and fees included) for a 1400 anytime minute plan w/ 2000 texts with Sprint that my hubby and I share. I was paying $82/mo for 1500 anytime minutes and 600 texts. 2 months ago, I called customer service and asked them what could the do to lower my bill. This is what they offered, I thought it was a pretty good deal. Also they did not extend my contract.

[Lynn]

Forgot to mention that we use antenna TV. It works out well for us, and we catch many more channels since we got the digital converter box. My parents have cable and they often end up watching the same shows that we do with our antenna since, "there's nothing good on tv."

[BobV]

Technology does get expensive. But I agree that shopping around can really find you the best bargains. You also have to put a cost to time and convenience of products and reliability as well.

[Andy]

Here in Indy, we get a lot of high quality digital channels over the antenna including a 24-hour cartoon channel, all the major networks, and a mostly-English, latino MTV. It's more TV than I can watch. I can't justify paying $50-100/month for cable. To compare it to going out to the movies seems rediculous. Just because one is a bigger ripoff, doesn't make the other a good deal. You just don't get enough reward for the time you have to invest to watch TV. I'm home from work for, at most, 5 hours/day that I'm not sleeping. One TV show knocks an hour out of that with nothing to show for it. Sometimes I'll catch up by watching a bunch on Hulu, but only because it's free and I can do it on my own time. I think most things in my life, including entertainment, improve when I stop watching TV completely.

[bebe]

I haven't watched TV in years (maybe 6 years) and I never pay for cable, except for a few months my roommate wanted cable TV but now we don't have it anymore. But I still feel like Im saving money.

[TStrump]

The cost is totally insane these days, but it's nice to have all the channels.
Thankfully, my roommate works for the cable company, so I don't pay for a thing!
We get every channel ... although there is still nothing on.

[Ryan]

Um Al Howard, you are seriously mis informed.

The past 3 cell phones I've owned had E911 built in where the call would be triangulated so you could be found. And more and more phones now have GPS built in, like my iPhone, so they get an exact location.

Not sure where you're getting your data from, but I have 3mb DSL and it's been rock solid. And many people are happy with AT&T's U-Verse, which is a variant of DSL, and enjoy 18mb speeds.

[dePriest]

If only my husband agreed with me about the outrageousness of paying $100/mo. for cable just so he can have every single channel Time Warner carries in our area! We could easily see most of the same stuff on the internet, or rent the movies he sees on the premium channels (rent one, get one), but he won't hear of it. Maybe he'll change his mind when he starts his new job, which pays $20,000/yr. less than he makes now! The man scares me to death, but he has been a good saver, otherwise. We have enough in savings to pay for our essentials for about one and one-half years should he become jobless, so maybe I can't gripe too much.