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:: HOME :: CREDIT CARDS :: LONG DISTANCE · Main Page · Residential Plans · Business Phone Plans · VoIP Phone Service · Local & Long Distance · Tips & Advice - New! · Long Distance FAQ · Long Distance Glossary · Calling Card Deals · Long Distance Carriers · Info & Resources :: INTERNET SERVICE :: LOANS :: CELL PHONES :: INSURANCE :: ONLINE BANKING :: KNOWLEDGE :: MORE |
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Long Distance Phone Tips and Advice Center Topic: Long Distance Phone Service Explained See the subtopics menu for explanations about the basics of long distance phone service. For additional information about long distance phone service, see the topic list directly below.
 Evaluating Long Distance CarriersHow Should I Evaluate 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. ^ Back to top Questions to Ask Before Signing UpWhat Questions Should I Ask Before Deciding Which Long Distance Plan To Sign Up For? There are a ton of options available for long distance phone service. You can easily become confused or even frustrated when evaluating the best one for you. Often, you are better served by asking yourself some specific questions rather than just looking for the apparent lowest price per minute. At times, what at first appears to be the lowest cost may not be, because of monthly fees, call surcharges, or other items. Some questions you might ask yourself:
As with most products and services, a "one size fits all" solution is quite rare. If you ask yourself what you really need, the answers to these questions will help you select the lowest long distance dialing service available. ^ Back to top Why Some Rates Are So CheapHow Are These Long Distance Companies Offering Such Cheap Rates? Recently, long distance rates have been only minimally regulated by the Federal Communications Commission (FCC). Minimal 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. ^ Back to top How to Select the Best Long Distance PlanWith All The Long Distance Choices Available, How Can I Select The Best Plan For Me? There is such an extensive menu of long distance companies offering cheap long distance phone calling plans, you should try to exercise good judgment before selecting 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 carrier offering 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. ^ Back to top Options for Business Long Distance ServiceWhat Are Some Better Options for Business Long Distance Service? Long distance carriers that specialize in business long distance plans could 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. ^ Back to top Popular Options for International Long Distance ServiceWhat Are Some Popular Options for International Long Distance Service? 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: ^ Back to top State-to-State Long Distance RatesDo Long Distance Rates Vary from State to State? Long distance rates can vary from state to state and 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 long distance 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. ^ Back to top Alternatives to Classic Landline Long Distance Phone ServiceWhat Are the Alternatives to Classic Landline Long Distance Phone Service? Increased competition and technological breakthroughs have spawned a number of low cost alternatives to traditional landline long distance phone service in recent years. But don't disregard classic long distance carriers as many also now offer cheap long distance phone rates. Yet, the available alternatives for long distance dialing can be very attractive.
These are but a few options offering discount long distance service that can save you significant dollars over traditional landline long distance carriers. You should still evaluate the primary landline companies as their response to this competition is to offer long distance phone service plans that favorably compare to some of these new options. ^ Back to top
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