Thursday, May 17, 2012

Avoiding a large phone bill when traveling

August 5, 2010 · , ,

Avoiding a large phone bill when traveling

Data deals
With everything from Internet radio to online maps to multitudes of apps, iPhones and smartphones can consume huge amounts of data. It might not be a big deal at home, but using all those apps on the road can add up quickly. If you plan on using a lot of data services while traveling, make sure you check with the carrier to see if it offers international data roaming plans.

For example, AT&T offers data roaming plans for the iPhone and smartphones that provide 20 megabytes of data usage within 90 countries for $24.99 per month, and up to 200 megabytes for $199.99 per month.

These charges are in addition to whatever your usual monthly charge is in the United States, but the cost pays off if you use a lot of data, especially when you consider that the standard international roaming rates for many Western European countries are about $20 per megabyte (according to Mr. Grunski, of Telestial, some Web pages are half a megabyte, so downloading, say, five pages in a single day could cost you $50 without a plan).

In addition, AT&T recommends that iPhone users go to their settings and turn off data roaming and options to fetch new data. They should also reset their usage tracker to zero so they can keep an eye on new charges, and make sure to use Wi-Fi instead of their phones’ 3G services to check e-mail messages or use the Web.

SIM cards
Frequent travelers may want to consider another money-saving technique: replacing a phone’s American SIM card (the little electronic memory card that identifies and configures your phone) with a local (or country-specific) SIM card. In general, when you do that, all incoming calls will be free and outgoing calls (local or international) can be significantly cheaper.

Be aware that replacing the SIM card means that your phone has a different number, so you may want to let your contacts know, or set your phone to forward all calls to the new number before you go. Your phone also has to be unlocked so it can work with other carriers’ networks — your cellphone company can provide information on how to do this — and it needs to be compatible with the wireless services in the country you’re visiting.

“Even with an international roaming package on AT&T, it can cost 99 cents a minute or more for voice calls,” said Philip Guarino, an international business consultant and founder of Elementi Consulting in Boston. “The moral of the story is, dump your American SIM card and buy a local one instead.”

When Mr. Guarino travels he simply buys a SIM card at his destination airport and uses it for cheap local calls.

“In a pinch, even if I call directly from my phone using a foreign SIM card, the average direct-dial rates are about 60 cents U.S. per minute, which is cheaper than using my original U.S. SIM,” he said.

The VoIP option
Internet-based voice services (VoIP) such as Skype (skype.com) or Truphone (truphone.com), which charge as little as 2 cents for calls to regular phones, are among the cheapest ways for international travelers to communicate. This spring, Skype announced support for the iPhone, allowing iPhone users to make or receive Skype calls over either Wi-Fi or 3G connections.

One good option for travelers wanting to use Skype or Wi-Fi while traveling is Boingo Wireless. For $7.95 per month, travelers can sign up with Boingo (boingo.com) for unlimited Wi-Fi access in hotels, restaurants, cafes, airports and more in over 70 countries. Coupled with Skype or a similar VoIP product on an iPhone, smartphone or computer, it’s hard to beat the value.

Last, but not least
Don’t forget the old-fashioned calling card. When Mr. Guarino travels, he often uses discounted international calling cards from local cafes or newsstands.

“The rates to the U.S. are about 3 cents per minute, plus the cost of the local call,” he said. “It’s a good option for making a call from a land line, especially if you have a conference call to make where you don’t want to worry about call quality.”