Cell Phone Spending Exceeds Residential Phone Spending

We haven’t had a land phone line in years. I gave up my residential phone when I got cable internet service and have just been relying on my cell phone ever since. Turns out a lot more people are doing that.

According to recently released data from the Bureau of Labor Statistics, cell phone expenditures increased rapidly from 2001 through 2007. In 2007, cell phone expenses surpassed residential landline expenditures.

Cell Phones vs. Landlines

Cell Phones vs. Landlines


What’s really amazing to me is how much more people are spending on their cell phones. The annual expenditures for cell phone services per customer has gone from $210 in 2001 to $608 in 2007. That’s an increase of 190 percent! Meanwhile we’ve been spending about 30 percent less on landlines- from $686 in 2001 to $482 in 2007.

Our spending on phone service has increased as well since 2001. Eight years ago the average annual telephone service expenditures by all customers was $914. That includes what we spent on landlines and cell phones. But by 2007, our phone service was costing us $1,110 a year. That’s a difference of almost $200. Here are some tips for lowering your phone bill:

1. Do you need both a landline and a cell phone? Try living with just one service.
2. Try a pre-paid cell phone. That way you won’t risk paying big chunks of money when you go over on your minutes.
3. Share your cell phone plan. My husband and I finally got on the same plan and we are saving at least $15 a month, plus we have more minutes.
4. Get rid of the extras. Stop paying for add-ons to your plan like text messaging, pictures or e-mail. You’ll save at least $10 a month.