Sometimes it seems like the phone companies are deliberately trying to confuse us.
"Ten cents per minute, except between 7 a.m. and 7 p.m., when it's 20 cents, except on Mondays and Wednesdays, when it's an additional 15 percent to all states, except Hawaii and Alaska, which is an extra 5 percent on top of the 15 percent."
Phew!
Or the old "fine print" trick:
Are there any good deals out there for telephone users? Or is it all a big rip-off?
Myvesta.org asked Sam Simon, chairman of the Telecommunications Research and Action Center (TRAC), what advice he had for anyone struggling to make sense of the different calling plans available.
"First, and most importantly, you should get on a calling plan," said Simon. "Two-thirds of us are still AT&T customers and most of those are still paying the standard rates, which are the highest rates out there." Standard rates for long-distance calls can be as much as 25 to 30 cents per minute.
TRAC, a nonprofit consumer advocacy group, has been monitoring state-to-state long-distance calling rates for 15 years and has a ton of useful information on its Web site, including how to find the best rates for your long distance calls.
Once you've decided to get on a plan, you need to look at more than just the per minute rate, warned Simon.
"It isn't how much you pay per minute," he said. "It's how much it costs you at the end of the month. When you open the bill at the end of the month and see how much you're paying for all cost and all services, that's the most important piece."
Simon said that consumers need to be aware of whether there is a monthly fee associated with their calling plan and whether there are time restrictions on getting the best rates.
"There are three or four 'gotcha's' out there and a lot more of what I call 'nickel, dimes, dollars and cents,'" he warned. "If you don't watch out, you're going to be nickel and dimed to death."
"It is very easy to think you have a good rate," Simon continued, "and come the end of the month, see a bill that will shock you. I've seen bills for $24.50 of which 50 cents is calls and the rest are fees."
Long-distance callers can now take advantage of "dial-around" services, which use a seven-digit prefix to dial around your current long-distance provider. Are they any good?
"10-10s can be a good option if it fits your calling pattern," said Simon. But he added this caution, "In the last six months the only ones I've seen advertised are 10-10-220 and 10-10-321, which are MCI services. I caution people about those. You only get a good deal if you speak exactly 20 minutes. God forbid you get an answering machine; you've just paid a dollar for a six-second call."
Myvesta.org's editor, Andrew Randall, has been using a dial-around service, "101-68-68," for several months.
"The big complaint against the '10-10s' is you have to dial a bunch of digits before the number you want to reach," said Randall. "That may have been a problem in the days of old rotary phones and analog switching, but today, punching a few extra numbers takes two seconds."
Randall said that he had experienced no problems with 101-68-68 and was generally pleased with the service.
"I'm paying just 7.9 cents per minute to anywhere in the States and even to my family in the United Kingdom. And I don't have to worry about what time or day it is, as the price is the same 24 hours a day, 7 days a week."
One advantage of the dial-arounds is you don't have to change your current service or long-distance provider. No matter who currently provides your long-distance service, dialing the prefix before the number you want automatically gets you the advertised rate of that dial-around provider.
A more recent development in calling plan choices is bulk buying, such as Sprint's "2 cents per minute" plan. Under Sprint's plan you can buy a thousand minutes of long-distance calls in advance for $20.
Sounds too good to be true, doesn't it?
Well, as usual, there's a catch. Your 1,000 minutes can only be used in the evenings. It's a great deal if you use up all your time, but if you don't, it's going to end up costing you more than 2 cents per minute.
Sam Simon says that knowing your own calling habits and patterns are the key to finding the right plan for you.
"There is no best calling plan for everybody because everybody calls differently," he said. "If it's too confusing for you, call your current telephone provider and ask it if you are on the best plan for your calling pattern."
The increase in competition among long-distance providers has been a great benefit to the consumer. But long-distance calling is a profitable business and some unscrupulous companies are taking the opportunity to get their hands on some of that loot using dishonest methods, such as "slamming" and "cramming."
Slamming is when your long-distance provider is changed without your permission. Although the Federal Communications Commission is making it harder for crooked companies to get away with these unauthorized changes, it does still occur from time to time.
Sam Simon had this advice for anyone afraid of being "slammed."
"Call your local phone company," he said, "and tell them that no changes are to be made to your long- distance service without your verbal or written specific permission. This is called a PIC Freeze."
PIC, or Primary Interexchange Carrier, is your long-distance provider. Once you instigate a PIC Freeze no telephone company can switch your service without your permission.
If you have already been "slammed" you are only responsible for paying whatever the cost of the calls would have been with your previous carrier. Future legislation may even mean you don't have to pay anything at all.
Some phone companies are now issuing passwords on request, which you can use to authorize any changes to your phone service. This would prevent "cramming," which is when additional services, such as call waiting or caller ID, are added to your phone line without your permission.
For any problems that you can't resolve with your phone company, visit TRAC's Web site for an easy link to the FCC's online "Consumer Complaint Form." In today's competitive market there's no need to waste money paying the standard rates for long distance service. Take Sam Simon's advice and call your current provider to get a better deal. Or you can visit Myvesta.org's Money Saving page to find the best calling plan for your needs.
One part of your phone bill you can't change is the taxes. Currently, 3 percent of all phone bills goes to the federal government. But there may be some good news on the way according to Simon.
"The House of Representatives is considering repeal of the federal excise tax on your phone bill," he said. "Originally this tax was to help pay for the Spanish-American War. Do you think we've paid for it yet?"
Myvesta.org is a national, nonprofit financial solutions organization headquartered in Rockville, Md. Founded in 1994, Myvesta.org has helped more than four million people through its programs and educational resources. The organization is committed to helping people resolve past financial mistakes, manage current financial responsibilities and find financial peace of mind. Myvesta.org's programs and services include debt management, crisis resolution, online bill management, creditor problem resolution, coaching and Financial Recovery Counseling. Prior to April 2000, Myvesta.org was known as Debt Counselors of America ®.
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