Phone Service Consumers Facts

Looking For A Great Long Distance Deal?

Whether you make only one or two calls a month - or hundreds of calls - there is a long distance plan for you. While the long distance marketplace can be overwhelming, a little bit of consumer education can help you make cents!

Read all the information related to price

As with all purchases, read the fine print and make sure that the plan you choose is a "good fit." Specifically, look at:

• Calling Patterns
  Consider the price for making calls at different times of the day. Do you make most of your calls during the day, night, or on weekends? What is your average volume? Do you call mostly within your state, outside your state, or to other countries?
• Monthly Fees
  When an ad promises 10 cents a minute, look for any monthly fees or surcharges you have to pay to get that rate.
• Minimum Charges
  Look for minimum charges for each call. If every call has a 50-cent minimum, even a two- minute call can cost you 50 cents. On "up to 20 minutes for a dollar" plans, a one-minute call or a message you leave on an answering machine is a dollar.
• Climbing Rates
  An ad may say that all calls up to 20 minutes cost a dollar. Look for information on what happens to the rate structure after 20 minutes. The rate may increase dramatically.

Shop as you would for any consumer product

Ask your provider and other providers about any "sales" or promotions they might be running. Compare "apples to apples". Check out phone company web sites.

Check for restrictions on the advertised rates

• Time Restrictions
  Is the advertised rate available when you want it? Some rates apply only at certain times of the day or only on certain days of the week. What are the rates at the other times?
• Geographic Restrictions
  Is the advertised rate available on all long distance calls - those that you make to someone in another state as well as those that you make to someone in another city in your own state? Some plans do not include long distance calls in the same state. Factor those rates in when you make your decision. Learn the terms intra- and inter- state.
• Promotional Restrictions
  Are the advertised rates constant or an introductory offer that's good for a limited time - such as, the first 60 days of your subscription? If so, what are the rates once the promotion is over?

Decode comparative claims

• Basic Rates
  An ad promising "50 percent off the basic rate" isn't always a good deal because the "basic" rate is another term for the highest rate available.
• Comparable Services
  Make a list of services offered by each company. Compare similar services when looking at the rates.

Look at your monthly bills carefully

Pay attention to your bill, checking to make sure you are being charged exactly what you were told and expected. If you think there's a mistake, or if you just don't understand your bill, call your provider for an explanation.

Glossary of Important Terms

• Dial Around
  Long distance services that urge consumers to dial a long-distance provider's access code (or "10-10" number) before dialing a long-distance number, to bypass or "dial around" the consumer's chosen long-distance carrier and to get a better rate.
• Inter-state
  Calls made from one state to a different state.
• Intra-state
  Calls from one location in a state to another location within the same state.
• Intra-lata
  Commonly referred to as local toll calls. These are calls placed within your local region.
• Calling Card
  An alternative method for billing and collecting for telephone services. Use is very similar to "credit card" use, but may have additional "per call" charges to the per-minute rates.
• Prepaid Calling Card
  A variation of the calling card where the money for services are rendered. Time/units/money are removed from the card as it is use. **there can be some hidden charges when using these - such as additional charges when using the card for a payphone call, and higher rates being charged for international calls.
• Universal Service Fund (USF) Fee
  The Universal Service Fund is generated through contributions from all telecommunications companies in the United States, including local and long distance phone companies, wireless and paging companies and payphone providers. This is assessed on all interstate and international calls. For more information on the USF fee, click here.

Toll Free Service Explained

A toll free number, also known as an "800 number", is a service where the person receiving the call pays for the call, rather than the caller. Toll free numbers are commonly used by large, mid-sized, small and home based businesses. However, more and more residential customers are using toll free numbers as an alternative to calling cards and collect calls.

Because of increasing usage of toll free services, toll free numbers are no longer restricted to "800" numbers. Currently, any phone number that begins with 800, 888, 877 or 866 is a toll free number.

Toll free numbers work very easily. First, you would select a toll free service provider. During the application process, you would need to select a "ring to" number. A "ring to" number is the phone number you would like your toll free service to ring in on.

Having a toll free number does not change your outgoing or direct dialed incoming calls. All callers who dial the "ring to" number directly, without using the toll free number, will pay for the call themselves (unless the call to you is local for them). Any calls you make from the "ring to" number, will work as normal. The only charges you will have for a toll free number would be a monthly service fee, depending on the provider, and usage on any incoming calls that were made by dialing the toll free number.

There are several different toll free service options available in today's market:

• Your long distance provider
  If your current long distance provider provides toll free service, you can choose to add a toll free number to your existing long distance service or choose to have a toll free number added to your account when signing up for service.
• A "Stand Alone" toll free provider
  "Stand Alone" toll free service is the option of getting a toll free service without having to change your long distance companies. They bill you a monthly fee, if applicable, and charge you for usage from incoming calls on the toll free number only. The ring to number remains handled by your regular long distance company.
• A "Forwardable" toll free provider
  "Forwardable" toll free service is usually a "Stand Alone" service, but with an extra option. You have the ability to forward your toll free number to any "ring to" number you choose and change the ring to number as often as necessary. This is accomplished by entering the providers website and changing the "ring to" number. Within minutes your toll free incoming calls will be forwarded to the new "ring to" number you choose. "Forwardable" toll free service is a newer type of toll free service and is not offered by many providers at the current time.
  
  Most toll free service providers will automatically assign your toll free number. Some services allow you to pick from a special list they have that changes all the time. You can opt to find a special "Vanity" number, but there are extra set up fees and monthly fees associated with doing so.

Do You Need a Toll Free Number?

Many home based and small businesses today are employing the use of toll free numbers for their business. Now, the question is does your business need a toll free number?

If you are marketing strictly offline to a local market, then you probably do not need one. However, if you market your business online or to a large offline area, then you may want to consider having a toll free number.

Having a toll free number when marketing your product or service online will add professionalism to your business. It also makes it easier for customers to contact you with questions and order products. It gives your website a "live" feel. It can also be the difference between making a sale or not with certain customers who are still leery of the web.

By making a toll free number available to your customers, you present an image of solidarity that customers often look for. All you have to do is look at the big commercial sites selling on the web to see that even with the boom of their dot.com store fronts, they are still making live support available to the customer.

It pays to shop around when considering a toll free number. Some of the more mainstream companies command rates starting at 7.5 cents a minute with a 10 dollar monthly fee and 25 dollar minimums. For a home based or small business owner, that can quickly put a toll free out of your price range.

But there are many smaller phone companies that cater to the toll free needs of small and home-based businesses, with pricing starting as low as only 2 dollars a month and 3.9 cents per minute, with no required monthly minimums.

Some smaller phone companies also offer "stand alone" and "forwardable" toll free service, so you can get a toll free number without having to change your long distance company.

You still get quality connections and customer support with the smaller companies, but because they don’t do big budget advertising, they are able to offer lower rates. And the difference in these rates can make the difference in affordability for the home based or small business owner.

Of course, not every type of business is right for the toll free approach, but those offering products and services to a national audience should seriously consider making a toll free number an addition to their business.

"Cramming" Facts

"Cramming" is the practice of placing unauthorized, misleading, or deceptive charges on your telephone bill. Companies that fraudulently cram people seem to depend largely on confusing telephone bills in order to mislead consumers into paying for services that they did not authorize or receive.

Local telephone companies often bill their customers for long distance and other services that other companies provide. When the local company, the long distance carrier, or another type of service provider either accidentally or intentionally sends inaccurate billing data to be included on the consumer’s local telephone bill, cramming occurs. "Cramming" shows up in many forms, and can be hard to detect unless you go over your phone bill very carefully.

How to protect yourself from "cramming":

Review your monthly phone bill each and every month, just as if it were a bank statement or credit card statement.

Check to make sure you recognize all the names of the companies listed on your bill. Keep track of what services were provided by listed companies, and learn what fees are for what service.

If you don’t know what service was provided for a charge listed on your bill, call your telephone or long distance company and ask them to explain the charges.

Make sure you know what even "small" charges are for. Crammers often try to go undetected by submitting $2.00 or $3.00 charges to thousands of consumers.

Keep a record of the telephone services you have authorized and used – including calls placed to 900 numbers and other types of telephone information services. These records can be helpful when billing descriptions are unclear.

Carefully read all forms and promotional materials, including the fine print, before signing up for telephone services or other services to be billed on your phone bill. Contact your agent or company with any questions you may have.

What to do if you've been "crammed":

Immediately call the company that charged you for calls you did not place, or charged you for services you did not authorize or use. Ask the company to explain the charges. Request an adjustment to your bill for any incorrect charges.

You can also report incidences of cramming to the FCC via their toll free number at: 1-888-CALL-FCC.

Slamming" Facts

"Slamming" is the practice of switching a customer’s long distance carrier without his or her knowledge or consent. It is illegal, under Section 258 of the Telecommunications Act.

How to protect yourself from "slamming":

You can freeze your existing carrier, which prohibits another carrier from claiming that it has been authorized to request a carrier change on behalf of the consumer.

Review your phone bills carefully each month. If you see any unfamiliar names, or charges that you cannot identify, call your local phone company and ask about these items.

never sign anything without reading it carefully.

If you receive a phone call about long distance service and you are not interested in switching your service, be sure to tell the caller that you are not interested in receiving his or her service.

If someone sends you a letter or postcard "verifying" that you have switched services when you did not initiate or consent to the switch, notify them that you did not authorize the change, then call your local telephone company to confirm that you are still with your preferred carrier.

What to do if you've been "slammed":

Call your local telephone company and tell them that you did not order service from the new long distance carrier and you would like to be reconnected to your long distance company. Also, tell your local phone company that you want any switching fees (charges for switching companies) taken off your bill.

Next, call the long distance company you were switched from and report the switch. Ask to be reconnected. You should not be charged for this reconnection.

Call the company that slammed you and let them know that all charges within 30 days of the slamming should be removed from the bill. Any other charges should be reduced to those that would have been charged by the authorized carrier. If this carrier will not adjust these charges, contact the FCC by calling 1-888-CALL-FCC.

If you are unable to resolve your complaint with the company that switched your service, you can file a complaint with the FCC via phone number listed above.