A cell phone. High-speed Internet connection. Digital cable TV. Satellite radio. Today's digital lifestyle can be pricey, and you're reminded every month.
By DAVE GUSSOW
Published April 7, 2003
It bothers Marie Harrington that she spends more for her monthly phone, cable TV and Internet services than she pays for electricity.
"My husband and I get tired of paying for these things," said Harrington, 39, of Temple Terrace. So every so often, they stop their cable TV service and "get back to nature."
Harrington and her husband have the usual array of gadgets at their disposal: home phone, cell phones, America Online subscription and cable TV. That adds up to about $160 a month. Their electric bill usually runs about $100 a month.
Ten years ago, consumers had a phone bill and maybe cable TV. Then the Internet entered the home, and cell phones became ubiquitous. Now, cool but costly add-ons, from wireless Internet access to satellite radio, are being touted as the next big thing. And the more gadgets we get, the more we pay.
Whether the latest gadget sets you back $100 or $1,000 initially, the monthly bills keep on coming. We took a hypothetical inventory of gadgets and services the well-connected techie might hope to own. The damage for the continuing fees that came with the devices totaled $307.39 a month, or $3,688.68 a year.
Well before that point of gadget overkill, many users will rebel, even though online and electronic devices have become an integral part of their daily routine.
"I think the general family of four that have cable, cell phone and Internet connection, their tolerance level is almost at a breaking point," said Tim Bajarin, president of Creative Strategies, a technology consulting company in San Jose, Calif.
The Harringtons of Temple Terrace frequently look for ways to save. They sometimes shift between cable and satellite TV services in search of the best deal. They use the 10-10-220 service for long-distance phone calls so they don't have to pay a monthly fee. And they refuse to switch to a high-speed Internet connection "that's just another waste of $40."
"I'm a bare-bones kind of person," Harrington said.
When times get tight, the first things to go for many people are premium channels and services. The cable industry knows that, consultant Bajarin says, and considers $50 a month the maximum most people will pay. The cable companies are getting expert at low-ball introductory offers that they hope will lure people into staying long after the special rates expire and prices rise.
Internet access costs may shake out in the next 18 months, Bajarin says, possibly putting pressure on AOL to cut its $23.90 monthly fee for dialup service because less expensive alternatives are available.
Phone companies also are adjusting, offering bundles that include local, long-distance and other services for one price. "People these days are not buying telephone service," said Bob Elek, a spokesman for Verizon in Tampa. "They are buying communications packages."
And they're not always going for the lowest price. Verizon recently introduced a $49.95 monthly package for unlimited local and domestic long-distance, as well as up to five add-on services such as voice mail. But it has received more interest in a $54.95 package with more features.
Chris Tauriello of Tarpon Springs represents those who are tempted by the ever-growing menu of gadgets. He is considering adding satellite radio ($9.95 a month) to his mix of a land line, cell phones, high-speed Internet connection and satellite TV.
"My wife wants the NASCAR channel," he said, laughing. "I look at it from a standpoint of convenience and time-saving. By having all that connectivity, it makes it easier to do the things I need to do."
Tauriello says he and his wife use all the services they pay for, getting their money's worth.
Yet Tauriello won't dive into the latest offerings without doing some homework. For example, he has avoided the wireless Internet, not because of cost but because he's concerned about security issues.
Not everyone does that kind of checking, though, and the lure of new gadgets and services can overwhelm a family's budget.
"It's so easy to be seduced by the new technology that it takes a while to realize what the price of that convenience can be," said David Heim, deputy editor of Consumer Reports magazine.
The magazine has not tackled the issue of how much technology spending is too much. "We're very aware of the problem," Heim said. "There's no one-size-fits-all answer."
A family conversation to discuss what's really needed, and wanted, is one way to approach the topic, Heim suggests, especially including children.
"It's possible to lead a very happy, full life without being connected to everything all the time," Heim said. "There are people who do it. It's possible to lead a good life without carrying a cell phone. It's possible to keep yourself amused and entertained without needing 200 channels of digital cable and video on demand and everything else the cable and satellite services are offering."
