What you should know
about your phone bill
The reason most people pay too much for phone service is that they just do not
understand how different types of calls are billed or who actually bills them. Nor do they
understand that there are many options available from the companies they already use which
could save them a fortune!
So here you will find a full description of the different types of calls you make along
with the options you have to save on those calls.
Let's start with the 6 different types of calls that you can make:
Local - These are calls made within your local
calling area.
Intralata - These are calls made outside of your local calling area, but not far
enough to be considered long distance
Check the LATA MAP to find out what
this area is in your state.
Intrastate long distance - these are all calls made
outside your intralata area but within your state
Interstate long distance - these are all calls made outside your state but within
the USA
International - Calls placed to any number outside the USA
Calling Card Calls - Calls placed using the calling cards provided by your local
&/or long distance company
Now you need to look at your most recent phone bills and see where you are spending the
most money. Look at the bill and work out how much you are paying for the different types
of calls you are making.
Once you have established where the majority of your calls are made then you know where
you need to focus if you want to cut your bill. Use the guides below to see where you may
be able to cut each part of your bill.
Local - Most of us make a lot of calls within our
'local' calling area, but it seems that many people do not have an unlimited plan
for their local calls. If you do not have such a plan you may want to inquire about one!
An unlimited plan can cost as little as $15 a month for as many calls as you make. This is
especially important if you use a dial-up internet service, as many people stay online for
hours, and without an unlimited local plan this can turn into a huge bill. Call your local
phone company to check the rates in your area, and while you are talking to them make sure
you know exactly where your local area is. DO NOT presume that a number is local just
because it is nearby. In fact, because of all the area code changes that are happening
some calls in the same area code are actually considered long distance!
Intralata - These "local long distance" or "regional toll"
calls have traditionally been handled by your local phone company, and you will often find
that you have the option to retain your Local Phone Company as provider of your intralata
calls. However, most of the time, the long distance carrier's rate will be better, and
have a more attractive billing method (ex: 6 second billing).
Long distance - First of all make sure you know the answers to the following
questions:
1 - Are you paying a monthly fee?
The ONLY reason that you should be paying a monthly fee for long distance service is in
order to get a very low per minute rate. If you only make a few long distance calls a
week, paying the monthly fee with your per minute rate could end up costing you more in
the long run! If you only make a few calls choose a plan with a higher rate but no monthly
fee. Great plans with no fee include PNG 5.9, & Worldxchange.
2 - What is your USF Fee?
Most long distance companies charge a USF fee. They may have a different name for it, but
it's there! Always ask what the USF fee is before choosing a plan. A USF fee is most often
charged as a percentage of the cost of your out-of-state calls. The company with the
lowest USF fee we know of is Capsule
Communications, at just 7.5%. However, their service is only available in Regional
Operating "Bell" territories.
3 - Are you paying any other fees of any kind whatsoever?
There are other types of fees that are added by long distance companies, like the USF fee
and the PICC fee on business lines. It is important to know what these are because you
will use them to determine which plan is best overall for you.
4 - Are you charged the same rate for interstate and intrastate calls?
Many long distance companies charge you more for long distance calls made within your
state (intrastate). Just because the TV ad said '5 cents a minute long distance' remember
that this rate may be limited to state-to-state calls.
5 - Are you paying 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. Check, ask and understand!
6 - Is your rate subject to change at any time?
Almost every long distance plan comes with the disclaimer 'Rates Subject to Change Without
Notice'. This means that your rate may change at any time for any reason. Check with
your carrier to see if the rate you are paying is a promotional rate and if so what it
will change to and when. The best idea is to check every month or two to make sure your
rate is still the same.
7 - Are calls made to Hawaii & Alaska higher than for the other 48 states?
This is very often the case, unless you have a carrier like Worldxchange that
charges the same to these states as to the others.
8 - Do you make any International calls?
This is important because if you do, then you need to be clear about what you will be
charged to those countries. The majority of companies seem to only offer reasonable
international rates IF you specifically request an international rate plan be added to
your account. This often means an additional monthly fee, usually around $3. If you do not
do this then look out! Sprint will hit you with $2 a minute to the UK if you fail to add
an international rate plan. Don't let this happen to you.
So you need to take into account how much you spend and where you make most of your calls
to. Be aware that carriers offer different plans based on particular types of calling
habits, and if you have the wrong type of plan for your calling habits then it could be
costing you dearly.
Calling Card Calls - Both your local phone company and your long distance company
will usually send you calling cards to use when you are on the road, but user beware!
These cards almost always have a connection fee and a sky high per minute rate. Do not
assume that the per minute rate on your calling card will be the same as the rate you pay
when calling from home, it is usually much much higher. It is common to here about rates
like 75 cents per minute plus a connection fee. If you use calling cards, choose a carrier
offering a good rate with no surcharges, or just buy pre-paid
cards.
There should be one clear lesson in all of this: check the
rate you are paying before you make the call.. And if your rate is too high then do
your research and switch to a carrier that has better rates for the calls you make.
Finally CHECK YOUR BILL when it arrives. Many mistakes are
made in the phone companies' favor. It is amazing! If you do not check your bill, then you
may end up paying more than you have to. It only takes a few minutes.
Now you are ready to make an informed decision about choosing the besr carrier for you, click here to see what we recommend. |
