This was written by the Ohio Consumers' Counsel and is used with permission. Most of the information here will apply to people seeking telephone services in the U.S. While this article is pretty thorough, it doesn't address a common workaround to avoid paying any long-distance charges, which is to use internet telephone software. But that's a topic for a different node ....
Choosing a long-distance telephone provider can be a tricky business. Not only are there hundreds of long-distance companies, but each company offers many calling plans. With so many options, it can seem overwhelming when trying to find the long-distance plan to best fit your needs.
Know Your Needs
It is a good idea for most people to shop around for their long-distance calling needs. The same long-distance calling plan is not right for all consumers. To choose the best long-distance calling plan, consumers must know and understand their personal long-distance needs. To understand your needs, you need to be familiar with your monthly telephone bills. Consider:
Once you understand your telephone bill, compare the different services offered by long-distance telephone companies:
- Contact different companies and request written information about calling packages they offer
- Evaluate your calling patterns
- Match your calling pattern to the long-distance company that best fits your needs
Remember, not all long-distance carriers use the same terminology. What some companies call "prime time" (normally the most expensive time to call) may be considered "off-peak" (a less expensive time to call) by another.
Try An Access Code
If you are not ready to switch to a new long-distance provider, try an access or "dial around" code. Access codes can be punched into the telephone before dialing a telephone number. The access code allows the caller to have that call carried by the provider whose access code is used. By doing this, you can decide which price is right for you. Contact long-distance service providers to obtain their access codes. The following are the access codes for the larger carriers:
Contact A Service
Perhaps you have contacted different companies and received information about the plans they offer, but you still cannot decide which plan is best. It may be time to contact a service that can examine your telephone bill and recommend a long-distance company.
Web Pricer is one of the many services; it is available at http://www.trac.org/Webpricer/. This site is run by the Telecommunications Research and Action Center (TRAC), a Washington D.C. non-profit consumer group. Web price searches the seven largest long-distance carriers to find the cheapest interstate plan.
If you would like a hard copy of their comparisons, send $5 and a self-addressed stamped envelope to TRAC, P.O. Box 27270, Washington, D.C. and TRAC will send you a copy of its Tele-Tips, which compares the rates of seven different companies' plans.
Another option is to contact Consumer Action. Consumer Action offers a free guide to long-distance calling plans. Write the group at 116 New Montgomery St., Suite 233, San Francisco, California, 94105 and they will send you a guide to help compare different plans.
A third option is A Bell Tolls at http://www.abtolls.com/. This site provides detailed long-distance rate comparisons.
Discount Packages and Plans
Although nearly 9 out of 10 U.S. households choose Sprint, MCI or AT&T as their long-distance carrier, approximately half of those households are not enrolled in any type of discount program. Due to lack of enrollment in discount plans, consumers spend a total of $2 billion more each year than they should for a telephone service.
Therefore, it may be wise to enroll in a discount program to justify your long-distance choice. Be aware that programs constantly change and it is best to contact the company directly and ask what programs are currently available.
Once you contact the company, determine if you are eligible for a program. Ask how long the discount is available and then request additional written information about the offer.
Calling Cards
Calling cards are a convenient way to place a call when not at home. However, a calling card provided by long-distance carriers AT&T and MCI may come with about a surcharge for each use. Sometimes calling cards have a rate of $0.20 to $0.40 per minute.
You may avoid a surcharge and gain a lower rate by obtaining a card from a smaller provider or reseller of telephone service.
Prepaid Calling Cards
You can also avoid fees by purchasing a prepaid calling card. Be aware that prepaid calling cards are not problem-free. Many consumers have discovered that some prepaid calling cards have the following problems:
- Cards often have higher per-minute rates than other calling cards.
- Hidden connection charges have been added to cards.
- Some companies have gone out of business, leaving their customers with unused (and unusable) minutes and no way of being reimbursed.
- Access numbers or personal identification numbers don't work.
- Toll-free access numbers are always busy, preventing use of the card.
- Poor connections prevent use.
When considering the purchase of a pre-paid calling card, ask the following questions:
- What is the actual cost-per-minute of the card?
- Is there a signup or activation fee?
- Where can I call?
- Who do I contact if there is a problem with the card?
- How reputable is the company?
- How many minutes does the card have?
- Do the minutes expire?
A personal 1-800 number
Setting up a personal 1-800 number may be a good idea for parents with a child in college. While a calling card can be used to call anyone, the 1-800 number can only be used to call home. Ask your long-distance provider about receiving a 1-800 number. Compare the rates quoted to the rates of other long-distance calling options.
Avoid rounding charges
Some companies charge for a five-minute long distance call when you really only spoke for four minutes and two seconds. This is because the company bills in 60-second increments. Therefore, you will often pay for more time than you actually use. As a part of your shopping list, find out how each long-distance com-pany bills each call. For example, do they round up to the nearest minute?
It is important to be cautious when using a pay telephone for long-distance calls. long-distance companies connected to pay phones may charge higher rates and additional fees. Using a calling card to access a different long-distance company's service may be the best alternative.
However, you should be aware that some companies may go to great lengths to make it difficult for you to bypass its service and use a different carrier. For example, letterless keypads have been placed on some pay phones, thereby making it difficult to dial through to another carrier (i.e. 1-800-CALL-ATT etc.)
Research and Compare
long-distance rates and discounts plans change on a continual basis. Consumer should frequently call long-distance companies and ask about domestic rates, billing increments and applicable discount plans. What may have been the best plan for you six months ago may no longer meet your needs.
ObCitation: The Ohio Consumers' Counsel is the residential utility advocacy agency for Ohio; their site is at http://www.pickocc.org/
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