|
Question: Recently you mentioned prepaid
phone cards, but how do I simplify the maze of information about
long-distance rates?
Answer: Consumer Action, a nonprofit consumer group in California,
completed a long-distance rate survey in the fall of 2001. Here are some
of the highlights of the study to help you decide if you can save money
by selecting another plan from your current
carrier or if switching carriers could save you more.
As competing carriers scramble to enhance profits, they often make up
the difference in competitive rates by adding charges, surcharges and
fees. So knowing basic rates is only part of your comparison challenge.
For example, customers who elect to have
their long-distance charges combined with their local phone bill must
pay $1.50 per month for the service.
Carriers are required to contribute a portion of their revenues to
subsidize local phone service for low-income and rural people and
provide discounted services to schools, libraries and rural health care
providers. Most of the major carriers charge a
universal service fee of 9.9 percent and, according to Michael Balmoris
of the Federal Communication Commission, carriers send “approximately
6.9 percent of revenues to fund these programs.”
Consumer tips suggested by Consumer Action include:
- Make sure you select a calling plan. Basic rates for the “Big Three”
carriers (AT&T, MCI, and Sprint) are 30 cents a minute from Monday
through Friday. When Consumer Action compared a “calling basket” of 42
daytime, 42 weekday evening and 42 weekend minutes, they found that you
would pay $29.82 if you had a basic plan. With a calling plan, you might
pay from $9.66 up to $17.55 for the same calling time, depending upon
the carrier you select and the specific carrier plan.
- Calling directory assistance is an expensive way to get a phone
number. This may cost as much as $1.99 per call. Instead, use 411.com
and get your telephone numbers over the Internet.
-
There are many carriers in addition to the “Big Three.” Consumer
Action compared 19 carriers and 44 discount plans. You can find their
entire survey online or order a copy of the Consumer
Action News issue with the “Long Distance Rates Survey” from Consumer
Action, 717 Market St., Suite 310, San Francisco, CA 94103-2109. Send a
self-addressed envelope with 57 cents postage.
If you have a cellular phone or if you purchase a calling card from a
discount store, you may find that you don’t need long-distance service
at all.
For more information, contact your local
Colorado State University Extension office. |
