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Updating your long distance service
Mie-Yun Lee, Editorial Director, BuyerZone.com
January 16, 2002

Despite the popularity of e-mail, the telephone certainly will not be going away anytime soon. Nor will phone bills. If it has been more than a year since you have taken a look at your long distance service bill, now is the time to look and see if you can do better.



You may be tempted to choose a plan simply based on comparing the per-minute rate prominently touted by the long distance service carriers. Before you do so, though, take the time to check that other fees in the calling program are in line. Otherwise, you may find yourself paying more than you actually thought you would be.

First of all, check into any minimum billing requirements. Some plans require that you bill a certain minimum amount every month in order to get the low per minute rates. You can get a sense for whether you will safely meet this minimum by multiplying this new rate by your total long distance minutes from a recent bill. Carriers may also require a minimum length contract in order to secure those rates.

Also check how calls are billed. A calling plan that features a lower per minute rate with a 1-minute billing minimum and 1-minute billing increments may look better on paper, but may in fact be no better than, or even worse than, a higher-rate plan that features 6 second minimums and 1-second billing. Typically, long distance service companies will bill calls using a 30-second minimum and 6-second rounding.

If more than 10 percent of your calling minutes are to locations within your state or to foreign countries, find out the intrastate and international calling rate. Similarly, if your company makes many calls during off peak hours, which is typically before 7 am or after 7 pm, see if there are special rates for those off hours. Carriers have for the most part moved to flat pricing, though, so it could be a moot point.

Another area where long distance carriers can differ is with the Universal Service Fund, or USF fee. All long distance service companies are required to pay this fee which helps subsidize telecommunications services for certain groups. But it's up to the carrier to determine how they will pay for it. This typically translates into a fee that gets passed on to you in your monthly phone bill and is determined by taking a certain percentage of your long distance bill. I have seen this fee range from six to twelve percent. Significant differences in the percentage charged among carriers can affect your final bill.

Plan on adding calling cards or toll-free service? Then check into those rates as well. In particular, with calling cards, check what is charged per call in addition to the per minute rate.

By keeping an eye out for hidden and not-so-hidden charges when evaluating long distance services, you can ensure yourself the best connection.

Quick tips

Slammed? If your company has had its long distance service carrier switched without your permission, ask your local phone company to put a PIC freeze on your lines.

Contract clock. If you sign up for a long-term contract, keep it to one year. Any longer than that and you risk missing out on potential additional savings.

Paying bills. Companies are starting to offer credit card and bank fund transfers for bill payment. Opt for credit card to give yourself greater flexibility should you need to contest charges.

Request FREE Quotes on Long Distance Service!
  • Contact national and local vendors at once
  • Compare features and prices

   
 
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