Evaluating long distance carriers

Long distance carriers come in all shapes, sizes and flavors, making it a challenge to evaluate long distance phone service offers effectively. Since being legally separated from local phone service bundles, long distance carriers have sprung up throughout the country.

It’s wise to remember that many of the new kids on the block merely buy minutes from the larger long distance companies and resell these minutes to you. This is not a negative nor is there any detriment to you as a caller.

You have no greater risk than if you were using the larger company’s lines to carry your long distance calls. You might even get a lower rate from the reseller than from the company that owns the lines.

Long distance rates can vary greatly from company to company and from state to state. An important question is often overlooked: Are the discount long distance plans I’m considering the lowest cost for the destinations I most often call?

For example, I’m considering an unlimited long distance calling plan with excellent per minute rates. But most of my calls are to St. Louis, Dallas, Boston, and San Diego, and another plan has lower per minute rates to those cities, but might be a bit higher for the rest of the country. I might save money with the state specific rates versus a pure unlimited plan.

Should your personal or business environment require international calls on a regular basis, instead of just state-to-state communication, you should evaluate the per minute rates for the countries you most often call. A fabulous unlimited continental U.S. rate plan could prove troublesome if their international rates are substantially higher than other long distance choices available to you.

So, evaluate all the components of long distance phone service to ensure you select the best long distance plan for you.

Read finding cheap international rates for details on how to easily search for the lowest international rates to your chosen location.

Why some rates are so cheap

Recently, long distance rates have been only minimally regulated by the Federal Communications Commission (FCC). Less regulation in the long distance market has led to increased competition, which ultimately has led to more choices and lower overall costs for consumers.

In this now highly competitive long distance market, many smaller, lesser-known long distance providers have surfaced and are able to offer extremely cheap rates to consumers. These smaller, lesser-known long distance carriers actually use the same networks to transmit calls as the larger, more well-known long distance carriers.

The main difference between these smaller and larger long distance carriers is usually in the area of customer service. These smaller companies provide their own customer service and have their own billing departments.

These (smaller) companies often “rent” in bulk from a major carrier and then re-sell this to consumers at a cheap rate. They are able to provide cheap long distance rates by keeping costs down. These companies avoid the large costs associated with advertising and marketing and don’t have to worry about many other expensive aspects of running a large-scale corporation.

How to select the best long distance plan

With such an extensive menu of long distance companies offering calling plans, you should try to conduct a thorough investigation before selecting the best option for you. Exercise good judgment – don’t simply select the one that seems best at first glance. Here are some items to consider before you select long distance phone service.

Let’s say that you find a long distance plan that offers state-to-state long distance rates at very low cost, say $0.035 per minute. However, you neglect to check out their in-state long distance calling rates and most of your long distance calls are made to other parts of your state.

When you do, you discover your in-state long distance rates are $0.079 per minute. Another plan you were considering had state-to-state rates of $0.049 per minute, but their in-state long distance dialing cost only $0.055, saving you over $0.02 per minute. Since the majority of your calls are in-state, you would save more money with plan number two, which has a higher state-to-state rate.

Should you make regular international long distance calls, you should closely examine the overseas long distance rates offered by different long distance carriers. While it is difficult to find long distance telephone service that provides you with unlimited or flat rate overseas calls, you might locate a long distance plan that offers you the lowest rates to the countries you call most often.

Compare these long distance rates with the state-to-state and in-state long distance dialing options offered to select the most cost effective plan for you.

You might also wish to consider using VoIP (Voice over Internet Protocol) phone service. Using the Internet as your phone system, you often receive unlimited long distance calls for both state-to-state and in-state destinations and very low international calling long distance rates.

You’ll need an up to date computer and high speed Internet service to use this feature but it may save you many dollars per month.

State-to-state long distance rates

Long distance rates can vary both from state to state and from carrier to carrier. When you investigate national long distance carriers, you will often see that state-to-state calling rates are identical for most areas, yet in-state long distance rates differ from one state to another. This results from a number of variables, often state government or cost of phone lines.

There are state agencies that set rates for a variety of public services, from electricity to insurance to telephone service. There is often no conformity from state to state of in-state rates, over which they have control.

You will often see a national long distance service advertise one state-to-state rate that is offered throughout the continental U.S. but an in-state rate that can differ by $.05 per minute or more. In the larger states, this can be a significant factor in your selection of long distance carriers.

If your calling patterns or residence state create higher charges to call your favorite destinations, you should consider flat rate unlimited long distance phone service. Paying a flat rate for calls to any state from your home or business phone will eliminate any state to state variances.

A 1010 call around plan might be the best solution if you often make calls from telephones other than your home or business. Another option to get cheap long distance phone service without thinking about long distance rates from state to state is using a prepaid calling card.

With the availability of unlimited long distance plans and 1010 call around long distance dialing options, many of the potential problems of extra charges for calling certain states have been eliminated. In-state long distance calls, because of the way the “system” operates, can still be an issue.

If you are unhappy with your state’s long distance rates, let your feelings be known to your state government and/or the long distance carriers charging these higher rates.

Cheap state-to-state long distance service alternatives

The separation of local and long distance service carriers some years ago has given birth to many alternatives and choices for your phone calls. Actually, there are so many options for long distance service, it is easy to become confused. Here are some of the more popular choices you should consider.

Search for lesser-known long distance companies
In-state and state-to-state long distance services can have rates that vary by state. The same long distance service that has the best rates for New York may have the worst rates in Arizona. Compare multiple carriers and long distance providers, especially lesser-known companies to find the cheapest rates for residential long distance service.

Examine 1010 dial around plans
These plans can offer low rates for all types of phone calls. Dial around numbers are assigned to you and entered into the phone when you place a call. When your call is prefaced by this number, your dial-around phone service will charge you their contract rate for your call. But be aware that not all states or all long distance service systems are compatible with all dial around plans.

Prepaid calling cards
Prepaid calling cards can both save you money and, to a degree, help to control your costs. Always look for the best pricing for your state. You can load calling minutes on your card and recharge your card when necessary. If you do your homework, you might gain access to very low cost state-to-state phone calls.

Voice over Internet Protocol
VoIP services allow you to place local, long distance, and even international phone calls through your computer and high speed Internet service. For a fixed monthly (or yearly) charge, you can normally call throughout the U.S. without any additional fees or surcharges. Your international calls may or may not have a small fee attached depending on the destination of your calls.

As you can see there are many low cost alternatives to classic long distance service offered by your primary phone company. Do your homework to find the best choice for you.

Options for business long distance service

Long distance carriers that specialize in business long distance plans can potentially save your company a great deal of money.

Historically, business calling plans are more expensive than personal long distance phone service. This extra cost results not from a policy of taking advantage of businesses, but the normally much higher call volume, that can tax communications lines much more than personal call volume. The more complex structure of business needs, including multiple lines to one location, ability to put calls on hold and multi voice mail functions causes the overall higher monthly cost.

New technology has allowed many long distance carriers to offer some excellent pricing to businesses. Whether you operate a small home business, a more classic small to mid-sized firm, or a large business enterprise, you can find a long distance plan tailored for your use.

Just as you should do when considering long distance telephone service for your personal calls, if your business has specific calling patterns to certain locations, look for business long distance plans that might have special rates to those areas.

You should also consider whether you need business long distance and data lines. You might find a combination plan from long distance carriers that, when voice and data lines are bundled together, give you a lower overall monthly cost for both. The same approach might save you money if your long distance calls include those of the international variety.

If you or your staff call overseas in addition to state-to-state, you might find a long distance dialing plan that includes reasonable long distance rates to international destinations, which again results in a lower effective cost on a monthly basis.

Examine your options for international long distance service carefully

International long distance rates can vary widely from many long distance carriers, so a close examination is recommended.

For example, from a “standard” rate of $0.07 per minute to Great Britain, Italy, France, etc. to bargain long distance rates of $0.039 per minute to call the same destinations, rates can fluctuate a great deal. Even when calling Antarctica, which has, for example, a “standard” rate of $2.62 per minute, you can find a cheaper long distance phone rate of $2.059 per minute.

When you make repetitive calls to a few particular countries, you should search for the long distance carriers that have the best long distance rates to those countries. Also note that, in some countries (Germany, for instance), there may be slightly different rates for calling one area in the country versus calling another location in the same country.

If you primarily call a particular region overseas, you might search for a long distance carrier that offers “regional” international long distance plans. The best long distance plan for you might be one that has special rates if you call Western Europe, Great Britain, Asia, etc.

By targeting your plan for the specialized area you call most often, you might save a lot of money every month, whether you make personal or business long distance calls to the same locations.

For more on this topic, see also:

• How to find cheap international rates

Alternatives for lower cost international calling

When trying to lower your costs for international phone calls, do not assume the lowest cost state-to-state long distance service will also offer the best international calling rates. Here are some alternatives to merely using your everyday long distance service.

Examine the available international dial-around plans available both in your state and that are supported by your local phone service. Look closely if you call a few cities in Europe regularly, as rates can differ from country to country with various plans.

Another option to possibly save money are prepaid international phone cards. There are often “sales” being offered that might prove to be just the bargain you want. Remember, there are many companies offering prepaid international calling cards, so do your homework. Saving just a few cents per minute could save you big dollars if you make frequent international calls.

You might even locate a global calling card or international call plan that offers low per minute costs to more out-of-the way destinations. Search the universe of online phone cards and long distance plans for those that offer better discounts to less common call destinations.

Another option that can be very cost effective is using a VoIP (Voice over Internet Protocol) service. Using your personal computer and high-speed Internet connection, you can make and receive calls (local, long distance, and international) through your home or business phone at very low cost. These services are becoming more reliable while remaining cost effective.

For more on this topic, see also:

• Options for affordable international calling
• How to find cheap international rates

1010 dial around services explained

Dial around services are basically “cheap” long distance service plans in which the caller bypass his or her current long distance carrier by dialing a toll-free access number. Dial around plans may offer significant savings compared to the rates charged by your current provider.

But, as with all products and services, things are never created equally. A 1010 dial around plan that is perfect for your calling patterns might be ineffective and possibly more costly for someone else. Here are some things to consider and evaluate.

• Not all plans work in all states. Check to see the plans your state supports.
• Some local phone carriers do not support all plans. Once again, check with your local carrier to see what long distance plans they support.
• Most billing rules are in one minute increments.
• 1010 call around plans cannot normally be used with cell phones, hospital room phones, inmate calling services, some businesses, and some dorm rooms.
• Dial around plans cannot normally be used outside of the United States.
• You do not need a separate long distance service carrier.

Whether you make many instate long distance, state-to-state, or international telephone calls, 1010 dial around plans can save you a lot of money every month. The majority of plans will appear as part of your local telephone bill, with your dial around companies (if you have more than one plan) separated.

Examine the dial around services available in your state. If you often call London or Rome, find the one with the lowest international rates. Should you spend much more time calling your mother in Orlando, your brother in Boston, and your daughter in San Francisco, look for the dial around phone service that has the best rates and reliability for state-to-state calls.

Long distance phone cards explained

Long distance calling cards operate like general local area phone cards with a few technical differences because of the nature of domestic long distance and international phone calls. The basic attributes of most phone cards:

• You purchase prepaid calling cards with the number of minutes of your choice (e.g., 60, 100, 200, 300, etc.)
• You can “recharge” your calling cards at the merchant from whom you purchased it, at another merchant who is authorized to reload the card you have, or, for most online calling cards, just visit your company’s Web site and add more minutes online.
• You can use your minutes to make local and long distance calls within the U.S.
• International calls will normally result in a “surcharge”, resulting in a deduction of some minutes because of the extra cost to connect to overseas phone systems.
• You are able to check on your remaining minutes using an 800 number or online at the long distance service Web site.

If you make regular international phone calls, you should consider one of the prepaid international phone cards. Instead of having minutes (which is money) deducted from your phone card, you will have already factored in any international rate differences. This saves you from any unpleasant surprises with mysterious minute reductions.

Don’t be afraid to shop around as calling card rates will differ from company to company. Here is a simple example that illustrates this fact. Example Company calling cards can be purchased online: a 60 minute phone card costs $5.49, while a 100 minute calling card is priced at $8.49.

Therefore, your cost, using a 60 minute prepaid calling card, is $0.0915 per state-to-state minute. But, if you use a 100 minute phone card, your cost is only $0.0849 per state-to-state minute for that same long distance phone call! In this example, we are not even comparing competing companies.

Shop around to get the best deal. The information is all there for you to determine the best option. Be sure to set aside a small amount of time to sort through the information and make the best choice.