Tips for Choosing a Long Distance Carrier

Choosing a new long distance carrier can seem like an overwhelming job, but with a little preparation, you'll be ready to face up to the task and make the best decision for your particular calling patterns.

The first thing you need to do is to figure out what your calling patterns are. Take a look at a couple of your most recent phone bills and see where you are spending the most money. Figure out how much you're spending on each of the six types of calls listed below. Once you have a clear idea of where the majority of your calls are made, you'll know where to focus if you want to save money on your bill.

1) Local Calls

These are calls made within your local calling area. They are covered in the cost of your local phone service.

Most local phone service gives you unlimited local calling, but some locations may not have unlimited local calling or it might only be available if you pay a monthly fee for it. Check with your phone company to be sure you are not paying too much for your local calls. This is especially important if you're using your local service for dial-up internet access.

Also, do not assume that because a phone number is in a nearby area that it is local. Call your local phone company to be sure you know what area qualifies as your local calling area.

It's quite possible that someone with your same area code could actually be long distance.

2) Intra-lata

These are calls made outside of your local calling area, but not far enough to be considered long distance. They are sometimes referred to as local toll calls.

Although these calls have traditionally been carried by your local phone company, it's very likely that you now have a choice as to who carries them - your local or your long distance carrier. Check with your local carrier for their best intra-lata rate options and ask about any unlimited or bulk rate intra-lata plans they might have. Then compare their rates to those offered by the long distance carrier you are considering. Be sure to take into account any fees either carrier may charge for their rate package.

3) Intra-state

These are all calls made outside your lata but within your state.

These calls within your state are carried by your long distance carrier and are charged at the prevailing intra-state rate which is generally higher than the inter-state rates. Intra-state rates can vary considerably, so if you make a lot of intra-state calls, you should look for the long distance plan with the lowest intra-state rates. We recommend you look at Pioneer as it was designed specifically to give low in-state rates. If the best intra-state rate you find is more than 5¢ per minute, you might want to consider using a dial around service like prepaid long distance for your intra-state and intra-lata calls.

4) Inter-state

These are all calls made outside your state but within the USA. These calls are also carried by your long distance carrier and appear on their bill.

These are usually the only rates you see in long distance advertising. But a wise shopper compares more than just the inter-state rate. There are many other factors to consider when choosing your carrier. It could be that you'll actually save money by paying a slightly higher inter-state rate once you consider the intra-state rates and all the other possible charges.

5) International Calls

Calls placed to any number outside the USA. International calls are generally carried by your long distance carrier unless you use a dial around or calling card service.

You need to be sure what the rates to your frequently called countries are. Some carriers offer an international rate plan for an additional fee, usually about $3. But in many cases you can do better on international calls by using a dial around service or calling card. See our article on International Calling for more helpful tips.

6) Calling Card Calls

Calls placed using the calling cards provided by your local &/or long distance company.

Generally you get a free calling card from both your local and your long distance carrier for use when you travel. But this is an area where you can get hit with some exorbitant charges. Your per minute rate on your calling card will most likely NOT be the same as your regular long distance rate. In fact, it might be as much as 75¢ per minute, or more. Plus, there is often a surcharge or connection fee added to the cost of each call. If you make calls while away from home, I recommend you get a stand alone calling card with rates in the 6-7¢ per minute range and no connection fees. Or you might even want to try a prepaid calling card if you don't require itemized billing.

Watch out for Added Fees

Is there a monthly fee?

There is no point in paying a monthly fee to get a lower rate if that fee brings the average cost of your phone calls up over the rate of another service with no monthly fee. There are many discount long distance services available with no monthly fees.

Monthly minimums

Some plans require that you meet a monthly minimum usage requirement. For example, if a plan has a $25 monthly minimum and your bill doesn't come up that high, you would still be billed $25 - even if your bill was actually only $10.

What is the USF Fee?

All long distance carriers must charge the FCC mandated Universal Service Fund fee, but not all carriers charge the same percentage. The fee is accessed on your inter-state and international calls and ranges from about 7% to about 11%. Try to find a service with a lower fee if you make a lot of inter-state and international calls.

Are there any other fees of any kind?

Business plans will charge a PICC fee for each line. Know how much it is and include that in your comparison shopping. Some companies will say no monthly fees and then proceed to tell you in the fine print there is a Local Access Charge or some other charge that they don't really explain. Read the fine print!

Is there a higher rate during peak hours?

Some plans offer great low rates in the evening or on the weekend, but weekday daytime rates may be much higher. Look for a plan with low rates 24/7.

Is the carrier offering you a promotional rate?

Often promotional rates are short term and after the set term the rate either increases or a monthly fee is added. Check with your carrier every couple months to be sure they aren't offering a new, lower rate. I don't know of one carrier that will automatically switch you to a lower rate, but some are very quick to increase your rates without notice.

Calls to Alaska and Hawaii

Are they billed at the same rate as your other inter-state calls? Most discount carriers charge extra for calls to these two states.

In Conclusion

One thing is clear - Long Distance can be confusing! But if you follow this advice and do your research you will be able to choose the right long distance carrier. If you have any questions or would like help evaluating your current phone bills, please feel free to contact me. I'd be more than happy to do a free phone bill analysis for you. Just fax a couple of your recent phone bills to 781-823-0224 and I'll go to work on them for you.

One final word of advice: CHECK YOUR BILL when it arrives. Phone companies make mistakes and they are most often in their favor. Look for any unusual charges and if you don't know what something is for, call the customer service number and find out. You don't want to be a victim of cramming - the posting of unauthorized charges on your phone bill.

For a fast and easy comparison of all the plans we offer that details all the fees and taxes that you'd pay with each company, please try our Best Long Distance Rate Calculator.