How Better Internet Service Can Pay For Itself

February 12, 2014

In my last blog post, I talked about how I was able to save money by upgrading my Internet service.  It’s not usual that you can actually get better service for less money, but even if upgrading your Internet service doesn’t yield a lower monthly bill, it can still save you money.  Here’s how:

Watch movies and TV online

Traditional satellite and cable TV programming comes with hundreds of channels but in reality, there may be only a handful of programs that you care to watch. Instead of paying for channels you don’t use, consider switching to online services that stream video for little or no subscription fees. The TV I purchased last year came with Internet connectivity.  Now, depending on what I’m in the mood for, I can watch movies through services like Netflix, Amazon Instant Video, or M-Go.  If I want to catch an episode of The Office or Downton Abbey, I just click on websites like Hulu, YouTube, or any one of the major broadcasting networks.

If I plan to stream more video, I’ll need a faster Internet connection but the $60 to $70 a month I save by not using cable or satellite TV may be more than enough to cover the additional $15 to $20 a month it may cost to upgrade my service.  That’s a potential savings of $400 or more a year.

Use Voice over IP for your phone service

When it comes to home phone service, voice over IP (VoIP) is a very economical alternative to an old-fashioned landline.  VoIP providers such as MagicJack, Skype, and others offer phone service at a fraction of the cost of conventional service.  For example, my current landline service runs about $35 a month, including long distance, but that same service might only cost around $3 a month using VoIP.  You may have to sacrifice a little sound quality, but if you have a really fast Internet service, the difference in quality may be negligible.

Although the cost savings potential is high, there are a few constraints to be aware of. First, you may have to make calls through your computer, which may or may not be a problem. Second, you may still be required to maintain a landline if you have a home security system.

As you can see, entertainment and communication is being transmitted over the Internet now more than ever.  If you want to take advantage of the cost savings offered by services transmitted over the Internet, you’ll want to make sure you have the bandwidth to support it. Call your local Internet service provider to find out what speeds they offer and for what price so that you can decide if this is the right move for you.