Do You Need A Land Line?

So many people have cell phones now days.  Actually, I personally don’t know anyone who doesn’t have a cell phone.

Most people also have a land line in their home as well.  Landlines are not cheap.  For just a basic landline service and I do mean basic, no call waiting, no voice mail, just dial tone, you could be paying about $32 for monthly service.  Doesn’t seem like much until you consider that almost half of that cost has nothing to do with the dial tone service itself.

Did you know that for that dial tone service you are paying nearly $15 in taxes and regulatory fees each and every month? That’s right, the average land line bill has the following taxes and regulatory fees associated with it:

  • Charge for Network Access $6.50
  • Universal Connectivity Fee: $.50
  • Local Number Portability: $.30
  • Emergency 911: $1.00
  • TRS (Telecommunication Relay): $.90
  • Federal Excise Tax Federal: $2.25
  • Utility User Tax, City: $.50
  • State & Local Taxes: $2.50

Source http://www.fcc.gov/cgb/phonebills/samplePhonebill.html

That is $14.45 of taxes and fees….every month or $173.40 per year.

A cell phone has similar taxes and fees, but not to the extent of a land line.  A cell phone only  runs about $7.27 in taxes and fees.  Much more reasonable.

If you have both a land line and one cell phone you are paying $21.72 a month in taxes and fees.  For some that is a simple dinner for two at a restaurant.

Now I do realize that many keep a land line for the 911 service, and I do agree, when I canceled my land line service this was a concern of mine as well.  Cell phones are pretty good in reaching out to 911 and tracking the location but it is no where near as good as a land line.

If you are looking for ways to same money each month, consider your family situation, phone usage and of course consider the safety concerns of 911, it just may be that your family structure can eliminate the land-line and use just cell phone service.