How to lower your phone and internet bill this month

Phone and internet bills have a way of creeping up. A promotional rate ends, a fee appears, a price “adjustment” lands, and you’re paying noticeably more than you were a year or two ago for the same service.

Because these bills come every month, even a modest cut adds up. Many households could save $300 a year or more with one phone call and one plan change, and some save quite a bit more.

What you’re paying for

Before you call anyone, pull up your last bill and look at it line by line. Most bills have four parts:

• The base plan: the price of your phone lines or internet speed.
• Equipment: a monthly rental for your modem or router, or installment payments on a phone.
• Add-ons: device insurance, extra streaming channels, premium features, international calling.
• Taxes and fees: some are government taxes, but many are company fees with official-sounding names.

Also note when you signed up and whether you’re still on a promotional rate. If the bill jumped recently, a promotion probably ended.

Move 1: Make a retention call (could save $10–$40 a month)

Every major provider has a team whose job is to keep customers from leaving. It’s often called the retention or loyalty department. They typically have more room to offer discounts than the regular billing line.

Before you call, spend five minutes checking what competitors offer in your area for similar service. A specific, real alternative gives you leverage.

When you call, ask for the department that handles cancellations. Be polite, be clear, and be willing to leave if they can’t help.

A sample script

“Hi, I’ve been a customer for [number] years. My bill has gone up to [amount], and I’m seeing [competitor] offer similar service for [amount] in my area. I’d rather stay, but I need my bill to come down. What can you do to lower it?”

If the first offer isn’t enough:

“I appreciate that. Is there any promotion for current customers, or a plan that would get me closer to [target amount]? Otherwise I’ll need to go ahead and switch.”

A few tips:

• Write down the name of the person you spoke to, the new price, and how long it lasts.
• Ask when the new rate ends so you can set a reminder to call again.
• If the answer is no, thank them and call back another day. A different representative may have different options.
• Only threaten to leave if you’re willing to. Sometimes the best savings come from actually switching.

Move 2: Consider prepaid or an MVNO for your phone (could save $20–$60 a month per household)

An MVNO, short for “mobile virtual network operator,” is a phone company that doesn’t own its own cell towers. Instead, it rents space on one of the big networks and resells that service, usually for less.

In plain terms: you often get coverage on the same towers as a major carrier, for a lower price. Many MVNOs sell prepaid plans, meaning you pay at the start of each month with no contract and no credit check.

The trade-offs to know about:

• Data may be slowed during busy times. Big carriers can give their own customers priority when a tower is crowded. For most everyday use, many people never notice.
• Fewer perks. Fewer bundled streaming services, phone promotions or in-store help.
• Customer service is often online or by phone, not in a store.

Check two things before you switch. First, coverage: find out which network the MVNO uses and confirm it works well where you live and work. Second, your phone: make sure it’s unlocked and compatible. If you still owe on it, you may need to pay it off first.

When you switch, you can usually keep your phone number. Don’t cancel your old service first; the new provider moves your number over.

Move 3: Right-size your internet speed (could save $10–$40 a month)

Internet providers often sell speeds far above what a household actually uses. Speed is measured in megabits per second (Mbps), and higher tiers cost more.

As a rough guide, a household of one or two people who browse, email and stream video often does fine on a basic-to-mid tier. Larger households with several people streaming, gaming or working from home at once may need more.

Run a free online speed test at a few different times of day. If you rarely come close to the speed you pay for, try stepping down one tier. Most providers let you change plans without penalty, and you can step back up if it doesn’t work out.

Move 4: Cut equipment and add-on charges (could save $5–$25 a month)

If you rent your modem or router, buying your own compatible one often pays for itself within about a year. Check your provider’s list of approved models first, and return the rented equipment promptly with a receipt.

Then go through your add-ons. Device insurance on an older phone, unused premium channels or a landline you never use are all common places to trim. Ask whether turning on autopay or paperless billing earns a discount; many providers offer one.

Move 5: Check for discounts you qualify for

Many providers offer lower prices for seniors, veterans, military families, teachers, first responders and some employers’ staff. Some offer low-cost internet plans for households on certain income-based assistance programs.

These aren’t always advertised. Ask directly: “Do you have any discounts for [your situation]?”

Who this is for, and when to stay put

If you’re mid-career with a family plan, an MVNO can cut the biggest chunk, since savings multiply across every line.

If you’re nearing or in retirement, right-sizing speed and asking about senior plans often pays off, especially if you no longer need high speeds for work.

When to stay put: if you’re mid-contract with a large early-termination fee, if your area has only one reliable provider, or if a bundled employer or family discount already gives you a good deal, a retention call may be your best move rather than switching.

Start here

This week, in about 30 minutes:

• Pull up your latest phone and internet bills and circle every add-on and fee.
• Check what one or two competitors charge for similar service at your address.
• Run a speed test at home and compare it to your plan’s speed.
• Call your provider’s retention department using the script above.
• Write down any new rate and set a reminder for when it ends.