Long Distance

Long Distance Carrier

Now that cellular phones have become common place, the long distance carrier market has radically changed. People often use their cell phones as their default long distance carriers, paying only for the minutes they use. Others make long distance calls using calling cards or over the Internet. Because of this increased competition, consumers have far more choices than ever before and typically pay less than a decade ago.

Because long distance is cheap today (often below 1.9¢ a minute), you have to talk a lot to hurt your budget. The key to choosing a long distance is to know precisely what you need so you don't pay for excess features you'll never use.

Check Your Usage

First, examine your usage patterns. See how many long distance minutes you actually used on your last few bills. Do you have family and friends out of state? Do you work from home calling clients far away? If you're a heavy user (1000 minutes and above), choosing an "all you can eat" plan from your own telephone service provider for a flat rate may be right for you. These plans allow you to control your costs while allowing you to talk as much as you want. Another possibility is paying a monthly fee in order to lock in a low per minute rate. Do be aware that if you're not a heavy caller, you may overpay by choosing a bundled plan.

International Long Distance Calls

If you frequently make international calls, search for a broadband or VOIP (voice over IP) plan which allows you to make calls over the Internet both local and long distance. Your telephone service provider likely offers one and this can be an economical choice. Remember that you are not legally obligated to choose your telephone company to provide your long distance. Many of the legacy phone companies still charge rates of 10¢ a minute so you are smart to look around for competing service plans.

Keep Reviewing Plans

If you do choose a long distance carrier rather than using your cell phone, you should periodically review your charges to make sure you are still getting the best deal. With VOIP usage increasing every year, it's likely that long distance prices will continue to drop. Some providers such as Yahoo and Skype even allow users to talk free.Call your long distance carrier's toll-free customer service number and ask if you're on their least expensive long distance calling plan. Make sure that when they look at your record and examine a typical long distance calling month. If you are not satisfied with your current long distance situation, this is a great time to shop around.

The Universal Service Fund Fee

You are charged a USF fee on every state-to-state and international call. Every long distance carrier must pay the government almost 7% for this fee, but a long distance carrier will sometimes charge you up to 12% for the USF fee. That's a 5% profit the long distance carrier is making from every customer. Many companies also charge you a $1.50 fee just to include your long distance bill with your local telephone bill.