Worked Examples
Seeing how these strategies work in practice can make the process much clearer. Here are two common scenarios showing how households can significantly reduce their telecom bills.
Example A: The Miller Household Renegotiates and Unbundles
The Millers had been with their provider, a major cable company, for seven years. Their promotional period had long since expired, and their bill had crept up significantly.
Their Bill Before the Call:
– Internet Plan (600 Mbps): $95.00
– “Choice TV” Package (125+ Channels): $70.00
– 1 DVR Cable Box Rental: $10.00
– Modem/Router Rental: $15.00
– Broadcast TV & Sports Fees: $27.00
– Taxes & Other Fees: $9.00
– Total Monthly Bill: $226.00
Mrs. Miller followed the prep steps. She found a competitor offering 300 Mbps internet for $50 per month. She realized they only watched local news, a few cable news channels, and a premium channel for one specific show. She called her provider on a Wednesday morning, used the negotiation script, and was transferred to the retention department.
The Negotiation and Result:
She explained that the total bill was unsustainable. First, she asked to remove the TV package entirely. The retention agent then offered her a new internet-only promotion. She also downgraded her internet speed, as 300 Mbps was more than enough for their needs. Finally, she purchased her own modem for $120 and scheduled the return of all the company’s equipment.
Their Bill After the Call:
– Internet Plan (300 Mbps) with New 12-Month Promo: $50.00
– Streaming Service 1 (with local channels): $73.00
– Streaming Service 2 (for the premium show, rotated): $16.00
– No Equipment Rentals, Fees, or TV Taxes.
– New Total Monthly Cost: $139.00 (Internet + Streaming)
By unbundling and negotiating, the Millers lowered their total monthly media and internet cost by $87.00 per month, a savings of over $1,000 per year.
Example B: The Garcia Family Switches Providers
The Garcias were out of contract and paying a high rate for internet-only service. They tried to negotiate, but their current provider’s “best offer” was still not competitive.
Their Situation Before Switching:
– Current Provider (Comcast): 800 Mbps Internet-only for $105/month. They are not in a contract, so the ETF is $0.
The Competitor’s Offer:
– New Provider (AT&T Fiber): 500 Mbps Internet-only for $65/month (price locked for 12 months). AT&T also offered a $150 Visa reward card for signing up online.
The Decision and Calculation:
The decision was easy. Switching would save them $40 every month. Over the 12-month promotional period, that’s a saving of $480. When adding the $150 reward card, the total first-year value of switching was $630. They also had a home phone number they wanted to keep. They initiated the switch with AT&T and requested to port their number, a process that transfers your existing phone number to a new carrier. This was a straightforward way to get a better deal when their current provider refused to budge on price.
