I just wanted to share what I recently did to cut phone and internet costs. I signed up with ATT but I chose only the minimum phone line with no extras for $14.95+ tax. I don't need caller ID, call waiting, etc. It was costing me $43.00+ a month just for the phone. I use my cell phone mostly anyway but wanted a land line, too.
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I chose the cheapest high speed internet which is $19.95+. I was paying $23.90 for AOL for the past 5 yrs and that was just for the dialup service not including have a phone line.
I chose not to add ATT as my long distance carrier because I have unlimited weekend and after 9:00pm calling on my cell phone. I just call on the weekends or after 9:00pm.
I purchase long distance calling cards at Dollar Tree, 99 minutes for $1.00. Of course, they don't let you use them at pay phones, I don't think, but that way in case of an emergency, I can call someone during the day or if I'm on vacation and don't want to use my cell phone minutes or am close to going over my cell phone minutes, etc.
I also send these cards to my friends and relatives in letters or cards so they can call me on the cheap. You never know if someone's financial picture can keep them from calling or not. But those 99 minute phone cards can let us stay in touch more often. A lot of my friends and family never heard of Dollar Tree until I tell them in my letter and phone calls so I am spreading my frugal tips that way too.