Right now, I have both Vonage and Verizon Freedom Essentials. I won’t get into why in this article, but rather the pros and cons, and the costs, of each. An added note, I live in Montgomery County, Maryland, so your taxes, surcharges, and fees may differ from mine:
For Vonage’s Unlimited Calling plan, I was paying 28.72 per month (final cost)
For Vonage’s 500 Minute/Month plan, I am paying 18.87 per month (final cost)
For Verizon’s Freedom Essentials Plan, I am paying 51.86 per month (final cost)
Just looking at the numbers, which plan looks the best? Right, Vonage’s 500 minutes per month plan. If you need more than 500 minutes, then Vonage’s Unlimited Calling plan is still far cheaper than Verizon’s Freedom Essentials.
Waaaiiit a minute! Doesn’t Verizon advertise their Freedom Essentials plan at $39.95 per month? How am I paying $51.86??? Here’s the breakdown:
Essential Plan: 39.95
Basic Service: 5.91
Gross Receipts Tax – Long Distance: .28
Telecommunications Access of MD Fee: .20
MD Gross Receipts Tax: .73
Montgomery County Local Surcharge: 2.00
MD 911 Fee: 1.00
Federal Universal Service Fund Surcharge Long Distance – .99
MD Federal Universal Service Fund Surcharge – .54
Federal Tax – .26
Total 39.95 + 5.91 + 6.00 (total fees, tax, etc.) = 51.86
Clearly you have to be a fool to chose Verizon over Vonage, right? Well, not so fast there fool-calling-reader! Verizon has proven to be much more reliable than Vonage. Vonage still needs an internet line, whether it be DSL (Verizon) or Cable Internet (expensive). You can also use someone else’s wireless, but you better hope they have a fast connection, or you’ll be dropping more calls than Lucille Ball dropped plates on episode #67 (I have no idea if the Lucy thing is true, so don’t bother looking it up).
Ultimately, to compare Vonage and Verizon, you also have to add in the internet costs. I’m ultimately switching the Vonage’s 500 minute plan (18.87/mth) and Verizon’s Dry Loop DSL (26.99/mth, final cost). Dry Loop DSL is for subscribers who don’t have a Verizon voice line. They charge more than regular DSL (was 17.99 before the switch), just because they can, but overall it fits our needs:
- Less price (45.86 for Vonage/Dry Loop DSL compared to 70.01 Verizon/DSL)
- Still more minutes than we need on a home line (never use more than 100 per month it seems)
- If Vonage goes down, we still have our cell phones, plus there are some cool Verizon Promo Codes here
- We can use wireless connection for a home security system
- Vonage doesn’t have any contracts. If we drop our Verizon service (i.e. NO Verizon DSL or Voice line whatsoever), we pay a $75 early termination fee.
Ultimately, determine what you can handle financially, in addition to risk.
Save More Money in 2018
Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.