How
to analyze your Phone
Bill to find the Lowest
Cost Long Distance
Here's a No-Nonsense
explanation of the cost of long distance service and how to find discount
programs that fit your need.
Your long distance bill, whether
you are a residential customer or a business customer,
is a direct function of your calling pattern. There are several key variables
that are calculated and each can vary significantly from carrier to carrier.
These variables are:
Unit Cost Per Minute - typically stated as fractional cents per minute Interstate
Rate - State to State Unit, stated as Cost Per Minute Intrastate
Rate - Calls made within your State, stated as Unit Cost Per Minute Intralata
Rate - Calls made within your Area Code that are considered long distance calls,
stated as Unit Cost Per Minute
International Rate - Calls made to another Country, stated as Unit Cost Per
Minute Monthly
Fee for Service - All programs charge a recurring fixed rate per month on top of
your call charges Monthly
Minimum Fee - Some programs discount the Unit Cost Per Minute but for the lower
rate, require a minimum monthly charge Directory
Assistance Rate - The charge incurred when you dial with assistance Toll Free
Rate - The charge for an incoming call if you have toll free inbound service,
stated as Unit Cost Per Minute
When studying your long distance
bill, you should be able to determine all these variables. Your bill should show
clearly the amount of minutes used and the corresponding fees charged on
Interstate, Intrastate, Intralata, International and Toll Free calling. Also,
the Monthly Fee for Service should be displayed. If your total fees fall below
the Monthly Minimum Fee, that should be shown as well. However, it is not
uncommon for telecom carriers to hide or disguise the variables; a sure indication that
the charges are unreasonable.
The first step in comparison
shopping for long distance is to determine these fees and understand if the bill
you are looking at is normal for you. If it is, you are ready to compare apples
to apples. Study the following example and you will see what to shop for.
#
Calls
#
Minutes
Total
Charge
Unit
Cost
Comment
Interstate
100
100
10.00
.10
/ minute
Intrastate
200
300
36.00
.12
/ minute
Highest Use
Item
Intralata
20
30
6.00
.20
/ minute
Low Use Item
International
5
20
5.00
.25
/ minute
Highest Unit
Cost
Toll Free
25
30
4.50
.15
/ minute
Directory
Assistance
3
3.00
1.00
/ call
Low Use Item
Minimum Mo
Fee
10.00
10.00
Total
480
74.50
Look for the dominant charges. When comparing
services, understand what would happen under different billing programs:
Program A offers a higher Interstate fee of 12 cents per minute but has no
Minimum Monthly Fee. The result would be an extra $2 in Interstate charges but a
reduction of $10 in Monthly Fees, netting a savings of $8 or 10% Program B
offers a lower fee for Directory Assistance of 50 cents a call but a higher
Intrastate fee of 13 cents per minute. The result would be $1.50 off the
Directory Assistance Fee but an increase of $3 in Intrastate fees, resulting in
an increase of $1.50 on the total bill. Program C
offers a 7 cent a minute Intrastate rate but has a $25 minimum fee. The result
would be lowering the Intrastate charge by $15 bringing the total bill to $59.50
but the $25 minimum would be a factor so you would save 20%.
The comparisons could be endless,
but the easiest scenario is to look at the line item that you are paying the
most total dollars for and seek out an alternative with the least unit cost for
that item. Also understand if you make many calls under a minute in duration and
look for your billing increment - it may be as low as 6 seconds or as high as
full minute increments. Then look at what the new program would charge for all the other
variables and determine the difference.
Our Experts have assembled a series of
choices for you to self-evaluate your bills and make an informed decision.
Analyze them for yourself then, if you are interested, order your new service
online. We hope our information has been helpful and that you are able to find a
less costly alternative.
Unit Cost Per Minute - typically stated as fractional cents per minute