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Long Distance Shopping -
Finding Diamonds In The Coal

Has the break up of Ma Bell, the deregulation of long distance telephone service (AKA the "Taking apart the only durn thing that still works in this country!") substantially lowered long distance costs as it was supposed to? Well, yes… and no.

Although hundreds of discount long distance plans and dozens of "dial-around" numbers (10-10-XXX) are available, a substantial portion of the calling public still pays standard direct dial rates when calling long distance from home. These rates average 28-29 cents per minute during the day (usually billed in full minute increments, slightly lower evenings and weekends) and are not discounted at all, making them the highest in the industry. Some people still treat a long distance call as a "special event", an expensive luxury to be used only on the most unusual occasions, and at these "retail" rates, that’s understandable. But long distance calling has become a commodity since deregulation in the early 1980s. With careful shopping long distance calls can now be placed at rates that make frequent use attractive and affordable.

Unfortunately, most long distance companies use "flim-flam" techniques to promote their discount calling plans and dial around numbers which makes finding the best plan for your needs next to impossible. Long distance companies do all of their billing by computer and computers can process mind-numbingly complex sets of rules for billing. Most consumers are unwilling to take the time to learn the complexities in the billing scheme. Calling plans are designed so users won’t understand the fine print and will end up using more service than they intended and this system works beautifully. Most consumers don't understand what is in their phone bill, and unless they are outrageously ripped off, pay the bill without question.

For example, each of the leading communications companies offer several calling plans. Twenty-seven different plans are available at this writing (that I know of), each with unique rates, fees and "fine print". To further obscure the issue, calling plans are added, revised, and discontinued several times each year. The cost per minute for a long distance call is the most advertised feature of all of these plans. Unfortunately, these great rates are often limited to "off peak" hours or weekends, may require a monthly fee of $5, $10, or more, and often require a minimum purchase of $25 or more per month in long distance usage.

Some of the variables in long distance plans include:
  • The cost per minute at day, evening, and night time rates or simply the cost per minute for a flat rate (same rate any time) plan
  • The monthly fee to receive this low rate (if any)
  • The monthly minimum to receive this low rate (if any)
  • The international and intrastate (within your state) rates (intrastate service can be purchased separately from another carrier)
  • The rates for calls to Alaska or Hawaii
  • The type of billing (some plans are only available with online billing or may only bill to a credit card)
  • The billing increments (Six second increments or one full minute increments are most common. Typically a business user makes many short calls and a residential user makes fewer and longer calls so six second billing increments can mean substantial savings for a business caller.)
  • The USF Fee (The Universal Service Fund Fee is used to support all of the goals outlined in the 1996 Telecommunications Act, including affordable rates for rural telephone customers, rural health care providers, schools and libraries. The USF is a variable tax, it varies from company to company based on the areas they serve and other factors. A long distance company may charge "whatever the traffic will bear" for this fee and the difference between what they charge and what they forward to the government in tax is pure profit. A company charging a USF fee between 7% and 8% is usually a good choice, a higher fee may indicate an unscrupulous company.)
  • The PICC Fee (The Presubscribed Interexchange Carrier Charge fee was discontinued for all residential lines and the first business line in July of 2000 but some companies continue to bill for it. If the company you're considering charges a PICC for a non business account, look elsewhere!)

Can a smart shopper avoid the entire
CogniDial Toll Free Dial-Around
CogniDial Toll Free Dial-Around
problem and save money using a "dial-around" plan like 10-10-XXX? Well, yes… and no. These dial arounds also include a good deal of fine print and can offer savings over "retail" rates if used carefully. In a home with several telephone users, insuring each user understands the terms and utilizes the dial around service to best advantage is difficult. If ALL calls are made according to the best terms of the dial around service, the savings will rarely exceed the savings realized with a well chosen calling plan so why bother dialing the extra digits? A comparison of popular dial around services is provided by 10-10PhoneRates.com.

Should a "name brand" be a major factor in choosing a long distance service? Definitely not! The fact is that ALL long distance companies share the same lines and equipment to complete your call. There is more difference between a Big Mac and a Whopper than there is between calling using AT&T and MCI although the "Big Three" have collectively spent over $1 billion annually on advertising for the last few years to try to convince you otherwise. If reducing long distance costs is your goal, you’ll often do better with one of the hundreds of "smaller", less well known companies, depending on your calling needs. Most offer toll free numbers to their customer service office to resolve problems or disputes. If you’re not satisfied, try another company until you find one that meets your needs. Remember, there are hundreds to choose from.

With all of these variables how do you even begin to comparison shop? Start by looking at your own phone bill. Who is your present long distance company? It’s usually listed on the bill but if you’re unsure, dial 1-700-555-4141 to hear a recorded message identifying your long distance carrier, or call your local phone company. Next, review the details of the plan you currently use. Call your long distance company and request a written description of your plan. If they refuse to provide it in writing, quiz them and make careful notes about the plan details. Use the plan variables listed above as a checklist and try to record an entry for each item on that list.

Next, phone bill in hand, visit the Best Long Distance Rate Calculator to compute the cost of your long distance calls using several of the leading discount long distance companies and calling plans. This site is most useful if you tend to call the same numbers regularly but will provide useful suggestions about which plans to research further for everyone.

Hopefully, you’ve honed your calling plan choices to a handful by now. It’s time to visit A Bell Tolls and compare the fine print between your candidates. This site provides extensive details on most of the calling plans presently available, it's updated frequently, and the information is unbiased. It includes basic domestic rates, international rates, intrastate rates, PICC and USF fees, monthly fees and minimums, links to the various companies offering the plans and more.

Last step, take the plunge and sign up for your chosen calling plan! If you haven’t been saving your phone bills, start now and monitor your long distance costs for the next few months to see if you made a wise choice. Also, they will be useful if you find you need to do further shopping. Caution: with lower long distance costs you may find you’re doing more long distance calling. Enjoy! But be sure to compare the total minutes of long distance from bill to bill as well as total costs before deciding if you made a good choice.

What about "Flat Rate" or "bundled" plans? If you make a lot of long distance calls or pay for numerous "local toll calls," a carefully chosen flat rate plan can be a very economical choice! Consider these flat rate plans, available for both business and residential customers.

Long distance calling costs have dropped dramatically in recent years and you owe it to yourself to investigate your options!

I've been advertising long distance services on this web site since 1999, when I became an OPEX Communications customer for both my personal and business long distance needs. I'm still an OPEX customer and over the years I've received the fewest customer complaints about OPEX services. They may not be the "rock bottom cheapest," but they are very competitvely priced and a top notch service! If you're undecided between companies, it may be wise to give OPEX a try.
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