Selecting the Best Long Distance Plan
Choosing the right long distance plan can be a frustrating task.
Most providers offer multiple plans, and a plan that works well for
one customer might be a financial disaster for another.
To get the best plan for you, you've got to understand your own
calling patterns and requirements. Take several months of existing
long distance bills and use them to determine:
- How many calls you make a month
- The number of long distance minutes you use each month
- The amount you pay for long distance each month
- The types of calls you typically make (direct dial, calling
card, toll free)
- The average length of your calls
- The time of day you usually make calls
- Where you call (local, domestic long distance or international)
- The rate per minute or rate per month
- Any monthly fees or minimum spending limit imposed by your
provider
After you identify your usage patterns and know your calling
profile, you're ready to take a look at the various types of plans and
the costs and conditions associated with them.
Pricing and Calling Plans
Once you've determined your current per-minute rate, compare it
to competitors' rates. Unfortunately, this isn't as simple as it
sounds: Providers often advertise a single rate, then charge customers
different rates for calls to different locations. For instance, a
provider may advertise calls for 8 cents a minute, but that rate might
apply only to out-of-state calls. The same provider may charge 12
cents a minute for long distance calls within your state. This is why
you need to know where you make long distance calls, in addition to
when and how often you call.
Variable Rate vs. Fixed-Rate Plans
Variable rates.
Traditional long distance plans employ variable rates based on
when you place a call. Generally a variable plan will charge a much
higher rate for calls placed during weekday business hours. Even
though many providers have moved to fixed-rate plans, don't take it
for granted that you'll pay a single rate for your calls.
Many long distance providers offer plans that include deep
discounts on calls made during specific days of the week. Although
providers usually offer these discounts on Saturdays and Sundays, some
providers use weekday promotions to attract business customers.
Fixed rates.
A fixed-rate plan charges the same amount per minute no matter
what time of day you place a call. Most providers charge a monthly fee
for fixed-rate service.
Carriers tend to promote a single calling plan, but beware: One
size does not necessarily fit all. Make sure that a provider offers a
plan that suits your calling profile. Also watch out for short-term
deals that offer discounted or free services. These
"bargains" often last for only a few weeks or months. After
that, if you don't cancel the service, it automatically continues at a
much higher rate.
Additional Fees
Monthly charges.
Many long distance plans include monthly charges in addition to
regular calling fees. A provider will impose this charge whether or
not you actually make any calls that month. Most charges are between
$1 and $5 per month, but some are higher. Ask whether your provider
imposes a monthly charge and find out the exact amount. And don't be
afraid to negotiate. If you are a high-volume customer, your provider
might waive the monthly fee.
Minimums.
Monthly minimum spending levels can be much more expensive.
Customers are responsible for this minimum amount even if their bill
does not exceed the amount. Typically these spending levels are quite
low (around $25), but some are much higher. When you select a plan,
ask your provider if they require a minimum spending level.
Surcharges.
There are also instances where a provider may impose a surcharge
in addition to your per-minute rate. Surcharges are usually associated
with calling cards or directory-assistance calls, and they can cost $1
or more per call. Ask your provider to detail all instances where they
impose a per-call surcharge.
Explore Your Options
Don't be afraid to seek special promotions and deals: In this
age of ferocious competition, providers will often bend over backwards
to win or retain you as a customer. Ask if there are any other options
you don't know about. Some providers, for example, have affinity
programs that offer discounted rates to members of particular
professional groups or associations. Providers may also offer
incentive programs that reward long-term customers with rates that
drop a set amount (e.g. a half cent per minute) for every six months
that the customer stays with the plan.
Once you've selected a plan, review your telecommunications
expenses every few months to make sure you're receiving the most
competitive rates available for your business.
Read the Fine Print
Always get the terms and conditions of a calling plan in
writing. When you read through the terms, be certain to read the fine
print, and take note of all asterisks and disclaimers. Ask the
provider to explain any ambiguous statements or disclaimers that you
don't understand
