Phone companies offer many different calling plans which can include a flat-rate per minute, a special rate on a certain day, or a discount on the amount of use for the month. Many programs are provided to you at no extra change, while others are subject to a monthly fee, a per call fee, or a minimum use per call. Some programs will round each call to the minute even if the call was only 20 seconds, while another program will only charge you for the 20 seconds used. Check with your phone company to determine the different calling plans available and then determine which option is best suited for you. The phone companies can not legally change your calling plan unless you request the change, even if the calling plan will save you money. The Public Utility Commission (PUC) and the Federal Communications Commission (FCC) dictate the legality of such changes.
Determine when you make most of your phone calls. Are your phone calls made during the day, the early evening, at night, and/or on the weekends? Compare your calling history to the programs offered by the phone company to determine which is best suited for you.
You may discover a program (plan #1) offering a $.10/minute flat rate with a $4.95 monthly fee may cost you more than a program (plan #2) offering a $.15/minute flat rate. For instance: if you average 70 minutes worth of calls each month, your cost using plan #1 will be $11.95, while the cost using plan #2 will be $10.50. Plan #1 will only be beneficial to you if you make more than 99 minutes worth of calls during the month, else you are throwing away your money!
Another phone company may provide a program (plan #3) offering a $.10/minute flat rate with a $.10 fee per call. The idea of paying extra for each phone call may not be appealing, while the monthly fee from plan #1 is appealing. Are you sure plan #1 a better choice? Plan #1 is only a better choice if you make more than 49 phone calls per month for a fee of $4.90/month. Therefore, the fee per call program offered in plan #3 is more beneficial.
Another program (plan #4) offering a $.10/minute flat rate with a minimum charge of x minutes per call may be an even better choice. For example: A service requiring a minimum charge of 3 minutes at a flat rate of $.10/minute. Any phone call under 3 minutes will be charged $.30, while any phone call over 3 minutes will be charged $.10/minute. Plan #4 is only a better choice when compared to the other example plans mentioned as long as your calls are consistently more than 2 minutes.
A calling plan offered by many companies is unlimited long distance for a flat fee each month. Some of the plans will even include your local service along with a number of special features such as: caller id, speed dial, voice mail, and other services. These plans are really good if you make a lot of long distance calls, particularly during business hours. Otherwise, you will be wasting money and would be better off with a different plan.
Don't throw away the advertisements received in the mail for long distance services accessible by dialing extra digits (such as 10-10-xxx) before the number you are calling. Read the information provided in the advertisement determining if there is a monthly fee, a per call fee, or no fee at all for using their service. Utilize the examples previously stated to help you decide the better alternative. There is no need to switch your long distance carrier, simply dial the extra digits as indicated in the instructions. Dialing the extra digits are codes to your local phone company switching station to route your call in a different direction than your normal long distance carrier. The call will always reach the same destination, but via a different route in the telephone network. Your monthly phone bill will contain an additional section associated with the phone charges using the other phone company.
Keep in mind the 10-10-xxx services may either be another way for a known long distance company (such as AT&T® or MCI®) to obtain more business by representing themselves as a new phone company or the service may actually be a new unfamiliar phone company wanting to enter the business of long distance service.
Programs are constantly changing, but the same principles always apply. Simply determine the best plan for you and don't let the phone company decide for you. Don't believe the statements that they will save up to 40% on all your phone calls. What is that 40% value based upon? I don't know and neither do you! Request detailed descriptions of their rates. If no details are provided, then don't use that service or program.
Due to requirements from the FCC, phone companies are required to finance the costs for computer and Internet access to schools around the country. Therefore, phone companies are charging their customers a Carrier Line Charge and a Universal Connectivity Charge. An additional dilemma occurs when using the 10-10-xxx services because you may be charged the fee not only by your long distance carrier, but also by the 10-10-xxx services. The additional charges may then offset the savings using the 10-10-xxx services. Keep in mind, the fees will typically only be charged if you make a long distance call during the month. Therefore, if you don't make a long distance call one month, then you won't pay the fee. Although, if you make a long distance call for even one minute, you will be charged the fee. The result is a very high per minute use for that one minute. Contact the phone companies to determine details concerning the charges.
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