Cheapest Local Phone Service -
Beware of the Bundles

Finding the cheapest local phone service is a challenge for the average consumer. The problem is that we cannot help but be influenced by multi-million dollar advertising campaigns of companies such as: AT&T, Verizon, Comcast ... Comparing their offers is almost impossible. The last thing any of these companies wants is to allow the consumer to make an apples for apples comparison. That would make it too easy for the consumer to spot the cheapest local residential phone service and force the companies into genuinely discounting their prices.

The Dark Side of Bundles

The major phone companies have hit gold with the strategy of selling bundles. In one hit they get to sell multiple services and in return they offer: simplicity, one bill, a discount and a contract. It's a great bargain for the companies. They get to lock in customers for an extended period and will probably keep the customer at the end of the term because it's easier for most of us to do nothing.

The strategy has worked so well that millions of consumers regularly search the Web for: Comcast bundles, bundle Internet phone and Internet bundles, but we wonder why:

1. Are the discounts real?

No, there are substantially cheaper phone services that don't require a commitment to a bundle . Some are more than fifty percent cheaper and deliver more features to boot.

2. Contracts?

The major phone companies have conditioned consumers into believing contracts are fair and reasonable. How can that be? Why should a consumer sign a contract for a telephone service? If the companies are confident in their ability to provide the cheapest and best local phone service, why do they do they require customers to lock into an extended commitment?

3. The Deal: 12-24 month lock in?

Phone services are the ultimate commodity. The cost of providing the service is directly linked to technology. Technology continues to reduce the cost of providing a telephone service. By locking customers into a "deal" for one to two years the phone companies can hedge their income streams and reduce the impact of competition.

Companies offering to fix their prices in return for extended commitments should be treated with skepticism. In reality it's unimaginable that the cost of a phone call will ever increase.

The Best Phone Company

In our quest to find the best phone company we are not only looking for the cheapest phone service, but also options that don't require contracts or extended commitments. It's a strategy that keeps the providers responsive and enables consumers to make decisions based on changing circumstances. It also recognizes that the cheapest phone service will probably come from an entirely new breed of phone company.