There are a great many long distance phone plans available. Sifting
through them all, and understanding the industry jargon, can leave you exhausted and
confused. To make your search easier, listed below are some key points to consider when
selecting a long distance service.
What are the rates?
First of all, there are four types of long distance calls:
local toll, instate,
interstate and international.
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Local Toll, or intralata, is a long
distance call to areas that are just beyond your local calling
area.
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Instate, or intrastate, long distance calls originate and
terminate within the same state. Each state's rate varies., or intrastate, long distance calls originate and
terminate within the same state. Each state's rate varies.
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Interstate, or state to state, long distance calls originate in
one state and terminate in another. The interstate rate is the rate most quoted in long
distance advertisements. For most long distance companies, the interstate rate excludes
calls to AK and HI.
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International long distance calls originate in the US and
terminate in another country.
Each type of long distance call has a different rate. Almost all of
the time, rates are expressed as a cost per minute. However, there are some long
distance companies that state their rate per unit, not minute. Often
times, several units equal one minute, making what seems to be an attractive rate to be a
bad bargain. To find out your true cost, and to be able to make comparisons, be sure to
ask for the rate per minute.
Point: Decide which
service offers you the lowest rate for the type of calling you do the most. Don't be
concerned that a service offers a high rate on a type of call you rarely make.
When are the rates effective?
Some long distance plans offer the same rates 24 hours a day, 7 days a week.
While others only advertise discounted rates that apply to "off-peak" times,
such as evenings and weekends.
Point: Of course,
with all else being equal, select the service with that offers the best rates all of the
time. However, special calling times may fit your your calling pattern.
What are the monthly billing fees?
While all long distance services must charge taxes and governmental fees (except
for tax-exempt customer), other monthly billing fees can vary widely. Typically, monthly
billing fees come in three different forms:
Don't confuse a monthly billing fee with a monthly minimum. With a
monthly minimum, you are charged the greater of the monthly minimum or your actual usage.
For example, if the monthly minimum was $25 and you used $18 of
long distance for the month, you would be charged the minimum of $25. Conversely, if your
usage was $32 with the same monthly minimum, you would only be charged $32.
Usually a long distance phone service will charge monthly fee or a
monthly minimum but not both. A monthly fee is more common that a monthly minimum.
Point: Of course,
with all else being equal, select the service with lowest monthly fee or minimum. However,
with large-volume customers, monthly fees, and especially monthly minimums, are a mute
point.
What is the billing increment?
While rates are almost always stated in minute terms, rates can be charged or
billed in different increments of time. The billing increment refers to what portion of
the per minute rate you will be charge for any portion of time used that is less than one
minute.
The most common increments are: full-minute, 30-seconds,
6-seconds and 1-second.
Example of time charged for a 2 minute and 21 second call using the
various billing increments:
- Full-minute = 3 minutes
- 30-seconds = 2.5 minutes
- 6-seconds = 2.4 minutes
- 1-second = 2.35 minutes
Point: Of course,
with all else being equal, select the service with the shortest billing increment.
However, if only make few calls and they are of long duration, the billing increment is
less important.
What is the billing minimum?
In other words, when does the billing increments begin. It is the minimum amount
length of time you will be charged. For example, with a one minute minimum you would be
charged for one minute for a 10-second phone call regardless of the billing increment.
The most common billing minimums are one minute, 30
seconds and 18 seconds.
Point: Of course,
with all else being equal, select the service with the shortest billing minimum. However,
if most of your calls exceed the billing minimum length of time, it is a mute point.
Does the service provide additional desired features?
Two features commonly requested by long distance customers are toll free service
and phone cards.
Most long distance phone services also offer toll free or inbound
service for a nominal monthly fee plus the cost of the calls. Typically, toll free instate
and interstate rates are the same as for outbound service.
As with toll free service, most long distance phone services also
offer phone cards. Per minute rates can vary widely by company so check rates.
Point: Consider the
cost of only the features that you intend to use.
Summary:
There is not one long distance phone service that is right for everyone. Each
individual's long distance calling situation is different. That's why
DiscountTelephoneRates.com offers a variety of long distance services.
With many factors to consider in selecting a long distance phone
company, only concentrate on the factors that apply to you. Give the greatest weight to
the factor that has the most importance to you.
Since no one long distance provider is right for everyone,
we offer a variety of companies. However, given the number of plans,
finding the right service to meet your call needs can be difficult.
That's way we created our Estimated Cost
Calculator. Not only does the calculator determine which plans are
available in your area but also ranks the plans according the lowest
monthly cost based on your specific calling profile. The calculator
also makes it easy to review features and compare rates of multiple
plans at the same time. Use the calculator to find the long distance
service that is best for your calling needs!
